Keston Abe

Myth: bonus depreciation is phasing out.
Reality: it's back at 100%. 📈

If you've heard "bonus is down to 40%," that was the old schedule. The One Big Beautiful Bill Act made 100% bonus depreciation permanent for qualified property acquired after January 19, 2025. IRS Notice 2026-11 has the details.

What that means if you're buying a short-term rental:
• The building itself still depreciates over 27.5 or 39 years. It doesn't qualify for bonus.
• Shorter-life parts like furniture, appliances, some fixtures and land improvements can, which is why cost segregation studies come up so often.
• Whether any of it offsets your W-2 income depends on average guest stay and material participation.

Get the order right: market, rules, property, then the tax plan with your CPA.

Want the full STR framework? Comment SHYFT or visit upshyft.com.

Not tax advice. Consult your CPA.

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