How to Offset W-2 Income with Airbnb Bonus Depreciation
Learn how short-term rental owners can use bonus depreciation and cost segregation to offset W-2 income and reduce their tax burden.
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See why we're the best option for Airbnb hosts
Short-term rentals play by different tax rules. Our study turns the furniture and fixtures you already own into a year-one deduction.
If your guests stay 7 days or less on average, the tax code treats your rental as a business, not a passive investment. Three things follow from that. The 7-day rule

Qualified property acquired and placed in service after January 19, 2025 gets 100% bonus depreciation. The short-life assets the study identifies are deducted in full in year one. Bonus depreciation on furnished rentals

Beds, sofas, appliances, window coverings, and decor depreciate over 5 years instead of 27.5. Every component is listed individually with its cost source, so a furnished rental moves more of its basis into year one. How furnishings are classified

Non-passive losses can offset ordinary income, including your salary. Cost segregation is what makes the year-one loss large enough to matter. Offsetting W-2 income
Rental losses normally stay with rental income. Short-term rentals are the exception, which is why the strategy is a favorite of high-income W-2 earners: the higher your bracket, the more each dollar of deduction is worth.
The tax code treats your rental as a business, not a passive investment. Learn more
Run it yourself for 100+ documented hours a year, more than anyone else, and your CPA may treat it as non-passive. Learn more
A cost segregation study creates the year-one deduction. Non-passive, it can offset W-2 wages. Learn more
Estimated year-one tax savings on a $500,000 short-term rental with $100,000 of short-life assets
$38,818 back in your pocket
Example only. Assumes 100% bonus depreciation and that your CPA confirms non-passive treatment. Individual results vary.
The rules, the tests, and the filings, explained.
Cost segregation studies for residential investment property and short-term rentals.
Itemized asset schedule
Every component is listed with quantity, cost source, and valuation
Full depreciation schedule
Year by year MACRS depreciation schedule
CPA-ready executive summary
Formatted for your CPA to work from at filing
Delivered in 3 to 5 business days
Submit your documents and get your completed report
No fees. Taxes included.
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Audit support
If the IRS questions your study, we respond at no additional cost. What Audit Support covers
Included
Renovation invoices
Send us your invoices and construction documents for even more deductions.
Included
Form 3115 catch-up
Bought in a previous year? Catch up on missed depreciation without amending prior returns.
Included
Tax assessment record search
No appraisal? We pull the county tax assessor’s record to source your land value.
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Revisions
Forgot a document? Send it within one week of receiving your study and we revise it.
Included
With other firms, you'll pay more upfront, or in hidden costs later.
Price
Who does the work
Turnaround
Site visit
Documentation
Audit support
What Airbnb and VRBO hosts ask before ordering a study.
Two tests decide it. First, the average guest stay has to be 7 days or less. Second, you have to materially participate, which usually means more than 100 documented hours a year and more than anyone else who works on the property. Meet both and the IRS may treat the rental as non-passive, so its losses can offset your W-2 income. Your CPA confirms whether you qualify. Our study gives them the depreciation numbers to act on. Read more on the 7-day rule and material participation.
Yes. Every component is listed individually, with its quantity, cost source, and valuation. For a furnished short-term rental that means beds, sofas, appliances, window coverings, and decor, each on its own line as 5-year property. That is where a furnished rental pulls ahead of an empty one: more identified components means more of your basis moved into short-life classes and deducted in year one.
Please do. After you book, we email you a short checklist: a closing document, photos, and your appraisal and inspection report if you have them. Your listing link is the ideal photo source because it shows the property furnished and staged, room by room. Send the link and we take it from there. If you also have an inspection report from closing, include it. It lists appliance makes, models, and ages that let us itemize more.
Tell us, and we account for it. When furnishings come with the purchase, they are part of what you paid, and the study identifies and values them from your photos and documents like any other component. If you furnished it yourself afterward, send the receipts. Improvements placed in service in a different year are scheduled separately, with the right convention for each, at the same flat fee.
Any time before your CPA files. Bonus depreciation on the short-life assets the study identifies is claimed for the year you place the property in service, and it is 100% for property acquired and placed in service after January 19, 2025, so ordering before year-end tax planning gives your CPA the most room to work. We deliver in 3 to 5 business days, so there is no need to order months ahead. Bought it in an earlier year? A look-back study catches up on the depreciation you missed.
Yes. The platform does not matter and neither does the property type, as long as it is held for rental use rather than as your personal residence. Single-family homes, condos, townhomes, cabins, and multi-unit properties all qualify. For a condo, the study covers the unit and what you own inside it. How condos are handled.
Every sofa, bed, and appliance, itemized and ready for your CPA.