Airbnb & short-term rentals

Airbnb/STR Depreciation Calculator

Your short-term rental could offset your W-2 income. See what cost segregation plus bonus depreciation could unlock. Free estimate in 2 minutes.

★★★★★

4.8 on Google

$1.5B+

saved on taxes

Read client reviews →

Get Started

Use the calculator to estimate STR depreciation and Year 1 tax savings

Cost segregation calculator: Add your property details to calculate potential accelerated depreciation expense utilizing a cost segregation study.

Trusted by thousands of property owners

Not a replacement for your CPA. This calculator gives you a planning estimate. Your free proposal includes the engineered study your CPA files with confidence.

★★★★★

"Excellent experience with R.E. Cost Seg. The team was knowledgeable, responsive, and easy to work with throughout the entire process. They answered all my questions promptly and provided clear guidance every step of the way. I appreciate their professionalism and customer-focused approach and would recommend them to anyone considering a cost segregation study."

Tamara Sorokovska

★★★★★

"Have used R.E. Cost Seg for 4 different cost seg studies and all have gone seamlessly, with a great product, at a great price. I appreciate the speed and efficiency, as well as the customer support. They make getting these done an easy and pleasant experience. Thanks!"

Jon Brenner

★★★★★

"Completed a Rapid Report for our recently purchased rental property. Working with R.E. Cost Seg was a great experience.

The Rapid Report process was straightforward and easy to complete for a 2-1 rental. The team was professional, responsive, and excellent at communication throughout. Documentation provided went straight to my tax professional - no questions, not clarifications required. Highly recommend them."

Andrew Byers

How to use this Airbnb/STR depreciation calculator

Property basis

Enter purchase price and land value.

Property type

Choose the closest property type + asset class: cabins, condos, townhouses, ADUs.

Renovations

Add renovation cost if you upgraded the property.

Tax settings

Set placed-in-service date, filing year, bonus depreciation, and tax rate.

Understanding your results (No Study vs Baseline vs Optimal)

No Study

Standard depreciation.

Baseline

Planning-range estimate for potential acceleration.

Optimal

Planning-range estimate for potential acceleration.

Key outputs

Estimated Year 1 Tax Savings

An estimate of how much your taxes could drop in the first year based on additional depreciation deductions (using your selected tax rate).

Estimated Year 1 Accelerated Depreciation

The portion of first-year depreciation that's 'pulled forward' via cost segregation (and bonus depreciation, if selected), above what standard depreciation would typically produce.

Net Depreciation Increase

The difference between accelerated depreciation and standard ('no study') depreciation, showing the incremental deduction created by the cost seg approach.

Deductions 1st 5 years

A cumulative estimate of total depreciation deductions over the first five years under each scenario (standard vs accelerated ranges).

Depreciation Over Time

A longer-term view of how depreciation deductions are spread across future years, illustrating timing differences (more deductions earlier vs later), not necessarily a change in total depreciation over the full life.

With cost segregation

Standard depreciation

HighLow

Y1Y2Y3Y4Y5Y6Y7Y8Y9Y10

Why STR owners often see larger Year 1 swings

Renovations and upgrades are common.

Acceleration is about timing (front-loading deductions).

Year 1 deduction · illustrative

front-loaded swing

Standard Accelerated (cost seg)

Frequently asked questions

Does bonus depreciation apply to STR properties, and what typically qualifies?

Potentially. Bonus depreciation generally applies to eligible shorter-life property (often 5-, 7-, or 15-year components) that may be identified through cost segregation. The main building structure is typically not bonus-eligible. Availability and percentages depend on the tax year and eligibility rules.

Do I depreciate land value for an Airbnb/STR?

No, land isn’t depreciable. That’s why the calculator asks for land value: it helps estimate the depreciable basis attributable to the building and eligible components.

What does “placed in service” mean for an STR (and why does it matter for Year 1)?

“Placed in service” is generally when the property is ready and available to rent (not necessarily when it was purchased). This date drives when depreciation begins and can materially change the Year 1 deduction amounts shown by the calculator.

Can I depreciate renovations and upgrades on an STR, and should I include both labor and materials?

Generally, yes, capital improvements to an STR are typically depreciable. Include renovation costs that are capitalized (often contractor labor, materials, and related project costs). Routine repairs/maintenance are usually treated differently than capital improvements. Use the calculator to estimate impact, then validate treatment with your tax pro.