Bonus Depreciation & Cost Segregation for Short-Term Rentals (2026 Guide)
Short-term rental (STR) investing on platforms like Airbnb and VRBO has exploded in recent years. But most property owners are leaving serious money on the table — not because their properties aren’t profitable, but because they don’t know how to unlock the full tax power sitting inside their investment. Two strategies — bonus depreciation and cost segregation — can turn a profitable short-term rental into a year-one tax deduction machine. For high-income earners, this combination can wipe out tens of thousands in tax liability in the same year you buy the property.