How to file bonus depreciation without cost segregation study on Short term rentals?

Forum|Forum|2 years ago
February 15, 2024
1 reply
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I tried to fit my whole question to the title.

In 2023 I bought a property and started doing Short Term Rental. I averaged less than 7 days per stay + fulfill the material participation (have a spreadsheet of my participated hours).

Now, when it comes to deprecating as part of Short Term Rental business, the real estate component deprecates over 40 years (at least that's what TurboTax shows).

I know that with bonus depreciation we can make this much quicker, but I could not find how I can do it. Preferably I do not want to have a cost segregation study done on it.

Not A Product Question

Mike9241

where is the rental in a foreign country - the 40 year life or you selected ADS (not bonus depreciation and nonresidential real estate) or you elected out of the business interest expense limitation

for residential rental real estate in US, there is no bonus depreciation. depreciable life is 27.5 years under the GDS system unless you made one of the elections above.

bonus depreciation would apply to things like furniture (class life less than 20 years) but again if you made the business interest expense limitation election bonus depreciation is not allowed