Hi {{first_name}} ,
If you plan to buy a short-term rental for tax deductions, timing this year is critical.
How it works
A cost segregation study splits the property into parts like furniture, appliances, flooring and landscaping. Since 2025, those parts will qualify for 100% bonus depreciation. That means a large share of the purchase price can often be deducted in the first year.
With short-term rentals, that tax deduction may also offset your W-2 or business income. This applies when the average guest stay is 7 days or/and you materially participate in running the property (At least 100 hours).
The deadline
To take the deduction on your 2026 return, the property has to be placed in service by December 31. In practice, you need to have closed on it, furnished it and made it available to book by that date.
The study itself can be done after year-end. The closing and setup can't wait. With about 10 weeks left, a property needs to be under contract in the next few weeks to make it in time.
Next step
Book a 15-minute call with a Savvy expert. We'll go over:
Whether the STR strategy fits your income and tax situation
Markets where you can close and be guest-ready before year-end
A realistic timeline from offer to first booking
Looking forward to working with you!
The Savvy STR Agents Team
This email is educational and isn't tax advice. Talk to your CPA about your situation.