Tax Code Advisors | Austin-Based Tax Savings & Wealth Growth Services Nationwide

Calculate Your Investment Returns

Enter your property details to see potential cash flow and ROI

🏡 Property Purchase

Purchase Price

Down Payment

Closing Costs

Furnishing & Setup

💳 Monthly Expenses

Mortgage

Property Tax

Insurance

Utilities

💵 Revenue Projections

Nightly Rate

Occupancy Rate

Cleaning Fee

Cleaning Cost

Maximize Your Tax Benefits

Calculate depreciation and tax savings with cost segregation

🏠 Property Details

Purchase Price

Land Value ℹ️ Typically 15-25% of purchase price. Land cannot be depreciated.

FF&E Cost

Annual Income

Expenses

📅 Rental Activity

Days Rented

Bookings ℹ️ Number of separate reservations. Critical for calculating average stay length.

Tax Bracket

W-2 Income

⚡ Depreciation Strategy

Use Cost Segregation Study

5-Year Property (appliances, carpets, fixtures)

100% Bonus Depreciation Permanent for property acquired after Jan 19, 2025

Understanding STR Tax Benefits

Learn how to maximize your depreciation and reduce your tax bill

❌ Standard Depreciation

$400K property (20% land)

Building: $320K ÷ 27.5 years

Annual Deduction

$11,636

✅ Cost Seg + 100% Bonus

Building: $256K ÷ 27.5 = $9,309

5-yr property: $64K × 100% = $64,000

FF&E: $30K × 100% = $30,000

Year 1 Deduction

$103,309

8.9x more than standard!

🔑 The 7-Day Rule (Game Changer!)

If your average guest stay is ≤ 7 days, your STR is NOT a passive activity:

✅

Offset W-2 Income

Losses reduce your tax bill immediately

✅

No Passive Limits

No $25K cap or income restrictions

✅

Huge Tax Savings

Combined with depreciation = powerful

How to Calculate:

Average Stay = Days Rented ÷ Number of Bookings

Example: 200 days ÷ 50 bookings = 4 days average ✅

📊 What is Cost Segregation?

Cost segregation is a tax strategy that separates your property into components with different depreciation schedules, allowing you to accelerate deductions:

5-Year Property

Furniture, appliances, carpets, light fixtures

15-Year Property

Landscaping, site improvements, outdoor features

27.5-Year Property

Building structure, foundation, roof

⚡ Bonus Depreciation Timeline

2022 and earlier 100%

2023 80%

2024 60%

2025 (before Jan 20) 40%

After Jan 19, 2025 (Current) 100% PERMANENT

🎉 Game Changer: The One Big Beautiful Bill Act (OBBBA) permanently restored 100% bonus depreciation for property acquired after January 19, 2025. No more phase-outs!

💰 Real-World Example (2026)

Property Purchase Price $400,000

Furniture & Equipment $30,000

Cost Seg: 5-Year Property (20%) $64,000

100% Bonus on FF&E + 5-Yr $94,000

Building (27.5 yr) Year 1 $9,309

Year 1 Total Depreciation $103,309

Tax Bracket 32%

Tax Savings (Year 1) $33,059

Plus you still have positive cash flow from the property!

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