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CostSegLogic

FOR SHORT-TERM RENTAL OWNERS

You’re running a real business.
The tax code rewards it — if you ask.

Short-term rentals get the most leverage out of cost segregation of almost any property type. The numbers are real, the methodology is sound, and the IRS recognizes it. CostSegLogic gives STR owners the engineer-grade study — same methodology the Big 4 firms use, IRS-blessed since 1997 — built around the way an STR business actually runs.

No card. CPA-reviewed. Available the moment you finish.

METHODOLOGY PEDIGREE

Built on cost segregation methodology IRS-blessed since 1997 — the same engineering used by Big 4 firms and REIT controllers for two decades. Used by property owners, including the founder. Trusted by CPAs, tax and real estate professionals.

WHAT MAKES THIS RIGHT FOR STR

Built for the way short-term rentals actually work.

Most cost-seg tools were built for commercial real estate and bolted onto residential later. CostSegLogic was built for the STR owner running one to a handful of Airbnbs — the workflow, the questions, and the deliverable all reflect that.

Built around the STR business model.

Material-participation hours, average-stay tests, the difference between STR-as-trade and STR-as-passive — all of it shapes whether cost seg is worth running. The interview is built around your actual setup, not a generic rental questionnaire.

Time-stamped, end-to-end.

Bonus depreciation, OBBBA transition rules, the December placed-in-service window — the calendar matters. The interview keeps track of which rules apply to your property at your placed-in-service date, automatically. You don't have to look anything up.

Audit-defensible, plainly.

Every number traces to an IRS code section. Every classification ships with the citation. No black-box, no proprietary mystery. Put it in front of your CPA. Defensibility lives in the methodology, not in the price tag.

If you’ve already done the math on a $5K firm and decided no, you’re our buyer. STR owners are sharp about the cost stack — you run a real business, you know what an inside-sales pipeline costs, and you’d rather have the deduction than fund someone else’s marketing budget. The methodology is the same one the $5K firms use. The price reflects what the work actually costs.

WHAT YOU GET

The complete STR study.

Federal deduction, state-specific treatment, recapture schedule, Form 3115. Every CostSegLogic study ships with all four. Anything less isn’t a complete study.

Federal first-year deduction.

5-, 7-, 15-, 27.5-year asset reclassification with bonus depreciation applied at the correct rate for your placed-in-service date. OBBBA transition handled automatically.

State-specific schedules.

Every state treats bonus depreciation differently — full conformity, partial addback, complete decoupling. Your study includes your state's situation in detail. No federal-only half-answer.

Plain-English recapture schedule.

The truth most firms don't tell you: when you sell, a portion of the accelerated deductions get recaptured. The study tells you exactly what, when, and how to plan for it. No surprises.

Form 3115, drafted.

If you've owned the property for a year or more, the §481(a) catch-up gets calculated and the Form 3115 ships drafted, ready for signature. Built-in to the report.

THE LEVERAGE

On a typical STR, the first-year deduction is tens of thousands of dollars.

A short-term rental property in the $300K–$700K range typically reclassifies somewhere between 20% and 30% of its depreciable basis into shorter recovery periods. With 100% bonus depreciation back under OBBBA, a meaningful portion of that hits in year one. For an active STR owner with material participation, those deductions offset ordinary income — not just rental income.

The free snapshot gives you the precise estimate for your property. Not a marketing range — the actual number, with a confidence band that sharpens as you answer.

ILLUSTRATIVE

$450K beachfront STR, North Carolina, active host.

Depreciable basis
$365,000
Reclassified to 5/15-yr
$87,000
Y1 deduction (federal)
$112,400
Y1 federal tax shield @ 35%
$39,340

Illustrative only. Numbers reflect a representative $450K STR scenario, not a real customer. Run the free snapshot for your property’s actual estimate.

RECAPTURE TRANSPARENCY

Your recapture schedule ships with the report. No one else does that.

Cost seg accelerates deductions — and a portion of those deductions get recaptured by the IRS when you sell. Most firms don’t put that math in the study. We do, on the front of every report, with the §1245 / §1250 split, the year-by-year tradeoff, and the state-level treatment all laid out. Sell in year 3, year 5, year 10 — you’ll know what you owe back before you decide.

Already have a study from someone else and just need the recapture math? Standalone recapture schedule, $99 — or free with the $1,199 CPA-Verified tier.

WHAT'S IN YOUR SCHEDULE

  • §1245 personal-property recapture at ordinary rates.
  • §1250 unrecaptured gain at the 25% federal cap.
  • State-level treatment for your state.
  • Year-by-year sell-vs-hold breakeven.
  • 1031-exchange and partner-buyout cases handled.

WHAT STR OWNERS SAY

How CostSegLogic shows up for an STR portfolio.

One illustrative voice from an STR portfolio operator. Real, named testimonials replace this card as our first cohort’s studies file and consents land — the full set lives on /customers.

Marcus Halloway

STR — 3-property portfolio · Austin, TX

Before

$0 cost-seg deductions

After

$248,200 Y1 deductions

I'd been quoted between $4,800 and $7,500 per property by traditional firms. CostSegLogic ran all three properties for $0 in under twenty minutes total, then asked $495 a piece for the reports. The Texas-vs-Arizona state schedule alone saved my CPA two hours of research.

Names and details illustrative; scenarios reflect typical CostSegLogic outputs and engine results.

STR-SPECIFIC FAQ

What STR owners ask first.

Do I qualify for the STR loophole?

The “STR loophole” is the combination of two things: an average guest stay of 7 days or less (which takes the property out of §469’s passive-loss trap), plus material participation by the owner (the 100-hour or 500-hour tests in the §469 regs). When both hold, your STR losses — including the cost-seg-driven deductions — offset your ordinary income, not just your rental income.

The interview asks the right qualifying questions and flags any gaps. If you don’t qualify this year, the study still has long-term value — the deductions accumulate against future rental income.

Does it matter when my property was placed in service?

Yes — the placed-in-service date drives the bonus depreciation rate and which transition rules apply. Properties placed in service before January 19, 2025 fall under TCJA’s phase-down (40% bonus for 2025). Properties placed in service on or after that date fall under OBBBA’s restored 100% bonus.

The interview uses your actual date and applies the correct rate. If you have a property with a binding contract pre-Jan 20 that closed later, that gets flagged for CPA confirmation.

Can I do a look-back study on a property I’ve owned for years?

Yes — that’s the §481(a) catch-up, and it’s one of the highest-leverage moves available. The study calculates the cumulative depreciation you should have taken under the reclassified asset lives, the catch-up deduction lands in the year of the change, and the Form 3115 ships drafted with your study. Built-in.

What about my state — California, New York, anywhere weird?

Every state treats this differently. Some fully conform to federal bonus, some decouple completely (CA, NJ, PA), some have addbacks that change the picture year-by-year. Your study includes the federal-vs-state schedule for your actual state, with the marginal tax-rate math worked out. If you live in a state with no income tax (FL, TX, TN, etc.), the study notes that and skips the schedule.

How long does the interview take?

Most STR owners with their purchase price, settlement statement, and basic property facts handy finish in well under an hour. Less if you’re experienced; a bit more if it’s your first time. The estimate updates as you answer, so you’ll see whether the property is worth running well before the end.

GET STARTED

Run a free snapshot on your STR.

No card. The interview adapts to your property and your state. The snapshot is yours to download the moment you finish — we’ll also email you a copy. If it’s worth upgrading, the $495 report is one click away.