How much does a cost segregation study cost for an Airbnb or short-term rental?

Cost Seg Smart pricing for short-term rental properties starts at $495 for properties under $1 million. Properties priced $1M-$2M are $1,295, and properties over $2M are $1,295. Traditional engineering firms typically charge $5,000-$15,000 for the same property type. Pricing is flat by purchase price tier, not variable by square footage or complexity.

Is a cost segregation study worth it for short-term rentals?

Yes. STR properties are among the highest-ROI candidates for cost segregation because the FF&E (Furniture, Fixtures & Equipment) in a furnished rental qualifies for 5-year depreciation. A typical $500,000 STR generates $50,000-$75,000 in Year 1 tax deductions from accelerated depreciation, producing 60-95x ROI on a $795 study fee. With 100% bonus depreciation restored under current federal tax law, every dollar reclassified into a shorter MACRS class is deductible immediately.

Can STR losses offset my W-2 income?

Yes, if you materially participate in the STR and meet the short-term rental exception. Under IRC Section 469, if the average guest stay is 7 days or less and you materially participate (typically 100+ hours per year and more than anyone else), STR losses are treated as non-passive and can offset W-2 wages, 1099 income, and other active income. Cost segregation accelerates the depreciation losses that drive this offset.

How fast can I get a cost seg study for my Airbnb?

Cost Seg Smart delivers STR cost segregation reports in under 1 hour from payment. Traditional engineering firms take 4-8 weeks because they require on-site visits. Cost Seg Smart uses satellite imagery, county assessor data, and engineering cost databases to perform the same component-level analysis remotely in minutes.

What is FF&E and why does it matter for STRs?

FF&E stands for Furniture, Fixtures & Equipment. For short-term rentals, this includes beds, couches, TVs, rugs, kitchen appliances, decor, and outdoor furniture. These items qualify for 5-year MACRS depreciation instead of the 27.5-year schedule applied to the building. Because STR properties are typically furnished to hotel-grade standards, the FF&E portion of the purchase basis is often 15-25% — which is why STR cost segregation studies typically produce higher first-year deductions than unfurnished rentals.

Do I need a site visit for an STR cost segregation study?

No. The IRS Cost Segregation Audit Techniques Guide does not require a physical site visit. It requires detailed documentation of building components and systems, which Cost Seg Smart produces using satellite imagery, street-level photography, county assessor records, RSMeans construction cost data, and engineering cost databases. This is the same underlying methodology traditional firms use after their site visit.

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Airbnb and vacation rental owners: claim $20K–$80K in Year 1 deductions. Software-driven, engineering-based, CPA-ready — with STR-specific FF&E analysis, delivered in under an hour. Starting at $495.

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FF&E

STR-Specific Furnishings Analysis

¹ Based on our analysis of STR studies completed across all markets. Individual results vary by property value, location, furnishing level, and tax bracket.

Most firms take 4–8 weeks and require a site visit. For an Airbnb.

This doesn't.

Cost segregation for short-term rentals (Airbnb, VRBO, vacation rentals) reclassifies 24 to 35 percent of a property's depreciable basis into accelerated 5-year, 7-year, and 15-year MACRS asset classes. STR properties benefit disproportionately because furnished rentals contain significant furniture, fixtures, and equipment (FF&E) that qualifies as 5-year personal property — beds, appliances, kitchenware, linens, electronics, and decor. With 100 percent bonus depreciation permanently restored under the One Big Beautiful Bill Act (2025), the full reclassified amount is deductible in Year 1. A typical $500,000 to $750,000 Airbnb generates $20,000 to $80,000 in first-year accelerated depreciation deductions. When combined with material participation under IRC Section 469 (average guest stay of 7 days or fewer, 100+ hours per year of active management), these losses can offset W-2 and other active income — a benefit unavailable to most long-term rental investors. Studies start at $495 and are delivered in under one hour.

Statute references: The 7‑day rule that distinguishes STR from passive rental is at Treas. Reg. § 1.469‑1T(e)(3)(ii)(A). Material participation tests are set out in Temp. Reg. § 1.469‑5T(a) — the 100‑hour test is the most commonly used by hands‑on STR hosts. MACRS recovery periods follow Rev. Proc. 87‑56 as referenced in the IRS Cost Segregation Audit Techniques Guide.

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How Much Can You Save in Year One?

Property Purchase Price

Year Built

Furnished?

Renovations & Upgrades (kitchen, bath, flooring, etc.)

Estimated Year-1 Tax Savings

at the 37% federal bracket

Accelerated Deductions

ROI on Study

$495

Study Cost

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Real depreciation breakdowns at 3 price points, MACRS allocations, and tax savings by bracket.

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40+ page professional report Under 1 hour delivery 200+ components analyzed IRS ATG-compliant methodology MACRS depreciation schedules 100% money-back guarantee

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Estimates are for illustration only. Details

Real Results: $750K Vacation Rental

How a Scottsdale STR investor accelerated $204,000 in year-one deductions — backed by data, delivered fast.

Property4BR/3BA — Scottsdale, AZ

Purchase Price$750,000

Year Built2018

Furnishing Cost$45,000

Study TierSTR + FF&E (starting at $495)

This investor elected our STR + FF&E analysis. The study reclassified building components and all furniture, electronics, and hospitality items — resulting in over $204,000 in first-year deductions beyond standard straight-line depreciation.

Total Accelerated (Year 1)

$204,000

beyond straight-line depreciation

$75,480

Est. Tax Impact (37%)

95x

ROI on Study Cost

34.0%

Basis Reclassified

FF&E Categories

What's in Your Study

Engineering-based analysis aligned with the IRS Cost Segregation Audit Techniques Guide.

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Component-Level Analysis

Every building system classified by IRS asset life (5yr, 7yr, 15yr, 27.5yr)

MACRS Depreciation Schedules

Full schedules your CPA can use immediately — no additional formatting needed

Bonus Depreciation Modeling

100% bonus depreciation applied to accelerate first-year deductions

IRS ATG Compliance

Methodology aligned with the IRS Audit Techniques Guide for cost segregation

FF&E Breakdown

Separate schedule for furniture, fixtures, and equipment (STR + FF&E tier)

CPA-Ready PDF Report

Professional report delivered to your inbox — most studies delivered in under 1 hour

Why FF&E Matters for STR Investors

Furniture, Fixtures & Equipment is the biggest missed depreciation opportunity for vacation rental owners.

Beds, couches, TVs, kitchenware, linens, and decor are 5-year depreciable property — not part of the 27.5-year building. Most cost segregation firms skip FF&E entirely. We break out every hospitality-related asset. See our list of 7 STR tax deductions most owners miss.

With bonus depreciation, eligible FF&E items can be deducted in Year 1 — turning your furnishing costs into immediate deductions.

STR investors typically spend $20K–$80K on furnishings.
Without FF&E analysis, those deductions are spread over 27.5 years instead of taken in Year 1.

Free Download: STR Tax Deductions Checklist

Every deduction Airbnb hosts can claim, organized by category.

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FF&E Categories We Identify

5yrBedroom Furniture (beds, dressers, nightstands)

5yrLiving Area Furniture (sofas, tables, chairs)

5yrTelevisions & Electronics

5yrLinens, Bedding & Towels

5yrKitchen Smallwares & Cookware

5yrDining & Outdoor Furniture

7yrDecorative Items & Artwork

STR-Focused Pricing. No Surprises.

Every study includes CPA-ready documentation prepared in accordance with IRS guidelines.

Frequently Asked Questions

Cost segregation is an IRS-recognized depreciation method that reclassifies portions of your property into shorter depreciation categories (5, 7, and 15 years instead of 27.5) as defined by Revenue Procedure 87-56. For STR investors, this means accelerating tens of thousands of dollars in deductions into the early years of ownership — reducing your taxable income significantly.

FF&E stands for Furniture, Fixtures & Equipment. If your STR is furnished (beds, TVs, kitchenware, linens, etc.), those items are 5-year property — not part of the 27.5-year building. Our FF&E tier identifies and schedules each item separately, so your CPA can take those deductions immediately instead of over 27.5 years.

Yes — if you or your spouse materially participate in managing the STR (100+ hours/year and more than anyone else per IRS Publication 925), the depreciation deductions can offset your W-2 income under IRC Section 469. This is one of the most powerful STR tax strategies. Learn how the STR tax loophole works, and review the material participation tests for STR owners. We recommend discussing material participation with your CPA.

Just the basics: property address, purchase price, square footage, and year built. Our intake form takes about 5 minutes. No site visit required. Photos and documents (closing statement, tax assessment) are optional but can improve accuracy.

Most studies are delivered in under 1 hour as a CPA-ready PDF sent to your email. Your CPA can use it directly — no additional formatting needed. See the full cost segregation study timeline.

Yes. If you didn't do cost segregation when you bought the property, you can file a Form 3115 (Change in Accounting Method) to catch up on missed depreciation — without amending prior returns. The full catch-up amount is taken in a single year.

Yes. Our methodology follows the IRS Cost Segregation Audit Techniques Guide and includes all 13 principal elements the IRS looks for. Each study includes component-level analysis, IRS asset class citations per Rev. Proc. 87-56, and supporting engineering narratives. We recommend all clients work with their CPA when filing.

How STR Components Are Classified Under MACRS

Short-term rentals benefit from FF&E (furniture, fixtures, and equipment) reclassification that long-term rentals cannot claim at the same scale. Here is how a typical furnished Airbnb breaks down.

MACRS Class	STR Components	Typical % of Basis
5-Year	All furniture, mattresses, linens, kitchenware, electronics, appliances, flooring, cabinetry, countertops, light fixtures, window treatments, hot tubs	18-28%
7-Year	Smart locks, security cameras, built-in entertainment systems, specialty plumbing (steam showers, jetted tubs)	1-3%
15-Year	Driveways, patios, fencing, landscaping, outdoor kitchens, fire pits, pool/spa equipment, exterior lighting, walkways	4-8%
27.5-Year	Foundation, framing, roof, exterior walls, HVAC ductwork, plumbing risers, electrical wiring	Remainder

Note: Furnished STRs reclassify significantly more than unfurnished. The FF&E category alone (furniture, decor, guest supplies) can account for 8-12% of basis on fully furnished properties.