What gets reclassified, and why it matters
A cost segregation study identifies components of a property -- flooring, certain fixtures, land improvements, furnishings -- that can be depreciated over a much shorter period than the building structure itself, which accelerates the timing of the deduction rather than changing its total size.
For a short-term rental, the reclassified portion is often modeled around a quarter of the purchase price, though the actual figure depends entirely on the specific property and should come from a real study.
Timing the study around the acquisition, not after
A cost segregation study is most useful when it's planned as part of the acquisition timeline, so its results align with the tax year the property is placed in service and with the applicable bonus depreciation rules for that year.
This is educational information, not individualized tax advice -- BNB Accelerator coordinates this timing with AE Tax Advisors as part of the acquisition process, but your own figures should be confirmed with a licensed advisor.
BNB Accelerator's acquisitions team, led by Nick Korom, screens over 1,000 short-term rental listings a week and hand-delivers the roughly 2% that clear underwriting. Book a free consultation to see what a done-for-you short-term rental acquisition looks like for your situation.