Pull 5 years of depreciation into one. The IRS-acceptable DIY cost-segregation method for Airbnb and STR hosts. Reclassify components to 5/7/15-year MACRS. Bonus depreciation overlay. Editable Excel. You bought a $450,000 cabin in Pigeon Forge in March. Default CPA depreciation: $11,800/year for 27.5 years. With cost segregation, you reclassify approximately 20-30% of the basis (cabinets, lighting, appliances, landscaping, decking, fencing) into 5/7/15-year recovery — and overlay current-year bonus depreciation on top. Year-one deduction goes from ~$11,800 to ~$45,000–$80,000. A professional cost-seg study costs $3,000-$10,000. This workbook is the IRS-acceptable DIY method — using the IRS guidelines for self-performed studies on properties under $1M. You walk the property, photograph and measure each component category, plug percentages into the workbook, and produce the asset breakdown your CPA needs to file. WHAT’S INCLUDED 📋 Component Inventory (the heart of it) · 5-year property: appliances, carpet, decorative lighting, removable cabinetry · 7-year property: furniture, equipment · 15-year property: land improvements (driveways, fences, landscaping, exterior lighting) · 27.5-year property: building shell (the residual) · Per-component % of basis allocation 📋 Reclassification Calculator · Total cost basis from purchase + closing costs (auto-pulled if you have TAX-002) · Land value carve-out (NOT depreciable) · Each component’s $ allocation = basis × % 📋 Bonus Depreciation Overlay · Current-year bonus % (verify before filing — phases down annually) · 5/7/15-year property eligible for bonus · Year-1 deduction = component cost × bonus % · Remaining cost depreciates over normal MACRS schedule 📋 Year-1 Deduction Comparison · Without cost seg: building depreciates at 27.5-year SL · With cost seg + bonus: massive year-1 deduction · Side-by-side dollar impact 📋 Form 3115 Catch-Up Path (informational) · For properties owned >1 year · Workbook produces the asset breakdown — CPA files Form 3115 · §481(a) catch-up math is OUT of scope (tell your CPA) 📋 Photo + Measurement Checklist · Component-by-component documentation requirements · Audit-defense substantiation (IRS Cost Segregation Audit Techniques Guide)
Related
- Depreciation Tracker (Full MACRS)
- Section 179 Planner
- Home Office Deduction Allocator
- Cost segregation on an STR: when the study actually pays for itself
- The Schedule E Workbook
What's inside
- $450K cabin, no cost seg: $11,800/year deduction × 24% bracket = $2,832/yr saved
- $450K cabin, cost seg + bonus: ~$60K year-1 deduction × 24% = $14,400 year-1 saved
- Difference: $11,500+ in tax saved THIS YEAR
Get the workbook
Format: Excel .xlsx + how-to PDF. Excel 2016+, Excel 365, Google Sheets compatible. Instant download after checkout. 14-day refund, no questions. Lifetime updates within v1.