Tax Estimator

STR Bonus Depreciation Calculator

Estimate your first-year deduction, whether you can likely use it now, and what it may save in taxes.

Property & Timing

Purchase price

Capitalized closing costs

Land value %

Typically 15-25%

Placed-in-service month

Bonus depreciation scenario

100% for property acquired after Jan 19, 2025

Cost Segregation & Assets

5-year property from cost seg (%)

Personal property, fixtures, appliances reclassified

15-year property from cost seg (%)

Land improvements, landscaping, paving

Furniture, appliances & decor ($)

Site / land improvements ($)

Qualification

Average guest stay (days)

Must be 7 days or less to avoid rental activity treatment

Your participation hours

Highest hours by any other person

My participation was substantially all participation in the activity

Tax Profile

STR taxable income before depreciation

Other passive income

Federal marginal rate (%)

State marginal rate (%)

Estimated Results

Depreciable real estate basis$735,000

Bonus-eligible basis$270,500

Bonus deduction$270,500

Approx. building depreciation (Yr 1)$17,930

Total first-year depreciation$288,430

Likely qualifies as non-passiveYes

Current-year usable deduction$288,430

Estimated federal tax savings$106,719

Based on your inputs, this STR likely qualifies as non-passive. Your depreciation deduction may offset W-2 or other ordinary income.

Important: This calculator is for educational and illustrative purposes only. It is not tax, legal, or financial advice.

The building itself is generally not bonus-eligible; this estimator applies bonus only to short-life property (MACRS recovery period of 20 years or less).
Passing the 7-day average stay test alone is not enough; material participation still matters.
This estimator ignores at-risk limits, personal-use rules, exact MACRS conventions, financing structure, AMT, NIIT, and state-specific nuances.
Cost seg percentages are assumptions unless backed by an actual cost segregation study.
Consult a qualified tax professional before making any decisions based on these estimates.

Last updated on April 8, 2026