Estimated Tax Benefits (Cost Segregation & IRC ยง469)
Details โน๏ธ
§469 eligibility not yet tested.
Conservative—
Bonus depreciation$0
Year 1 tax savings$0
Optimistic—
Bonus depreciation$0
Year 1 tax savings$0
Spread $0. Only an engineering study places this property inside the range; the headline figure and every return metric use the conservative column.
โก Cost Segregation Asset Breakdown (IRC ยง168k & ยง469 Loophole):
Each figure below is a range: conservative – optimistic.
- Depreciable Building Basis: $0 (Purchase Price minus 20% Nondepreciable Land). Identical in both scenarios — what differs is how much of it accelerates.
- 5-Year Personal Property: $0 (Furnishings, decor, appliances, electronics, game room equipment).
- 15-Year Site Improvements: $0 (Private pool, spa, water slide, fencing, deck, pavers, landscaping).
- IRC ยง469 STR Tax Loophole: Short-term rentals with average stays ≤ 7 days avoid passive loss limits, allowing the entire $0 bonus depreciation loss to offset active W-2 / business income.
๐ฏ 4-Pillars Institutional STR Strategy Summary
โ ALL 4 PILLARS PASS
๐๏ธ Pillar 1 (Legality & Zoning):
Permissive municipal STR zone (No minimum stay restriction, no city caps).
๐ก Pillar 2 (Property Specs & Moat):
Turnkey Private Screened Pool & Heated Spa Home with Game Room expansion potential.
๐ Pillar 3 (Market Revenue & Comps):
Conservative 3-comp average revenue model.
๐ฐ Pillar 4 (Financial Return & Hurdle):
CoC return exceeds 7.0% minimum hurdle rate.
Pillar 1-4 Pass: Permissive STR zone; Screened Pool, Spa & Water Slide Home ($67,000/yr conservative 3-comp revenue); Strong 9.03% CoC return exceeds 7.0% hurdle rate.