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Cost Segregation for Commercial & Short-Term Rental Owners
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Request a free estimate [email protected] |
Is there a first-year deduction sitting in your Airbnb?
A 30-second check shows your estimated number. Most owners see it with no email required.Steven Ellis, Basis Property Group. Recorded for short-term rental owners.
THE MINIMUM ROI GUARANTEE
Every study is custom-priced to your property, and every study carries our minimum ROI guarantee: your study identifies a large multiple of its fee in first-year accelerated deductions, or you do not pay for it.
How we can promise this. The free estimate screens your building before you ever pay a dollar or see a quote. If the projection does not clear 30 to 1, we tell you not to buy the study. We would rather decline the job than deliver a weak one.
James bought a Poconos cabin for $310,000.
Our study identified $68,000 of depreciation in the cabin. That was his first-year deduction, instead of a sliver a year for decades. Then he added a hot tub and finished the basement, raised his nightly rate 30 percent, and the cabin now pays him an additional $14,000 every year. (Client example. Individual results vary.)
And here is a delivered study:
A $1,040,000 short-term rental in Montgomery County, Pennsylvania.
Our engineered study identified $174,905 in first-year accelerated deductions, 135 to 1 in first-year deductions against the study fee. One delivered study, not a typical result.
The commercial minimum is 20 to 1. Our four commercial benchmark runs:
Free-standing restaurant
~67:1 deductions to fee
Mid-rise office
~40:1 deductions to fee
Office / warehouse
~33:1 deductions to fee
Medical clinic
~24:1 deductions to fee
Commercial benchmark runs, not client studies. Individual results vary.
WHY US, NOT A GOOGLE SEARCH
- Short-term rental specialists in your market. We work Monroe and Pike County cabins, not office towers. The national firms will not bother with your building; we built our practice on it.
- See your number before you pay anything. The 30-second check is free and most owners see it with no email required.
- The minimum ROI guarantee. If the study does not identify a large multiple of its fee, it is free.
- We show you the tests. If you use a property manager or your average stay runs long, we show you the 7-day average stay and material participation tests before you spend anything, and your CPA applies them. A lead mill will not.
- Your CPA stays in the loop. We deliver the engineering; your CPA files with it. Teammates, not replacements.
How It Works
Frequently Asked Questions
What does a study cost?
Prices are published on the Why Basis page by what was paid for the property, and each study is quoted in writing before you commit. Every study also carries the minimum ROI guarantee: it identifies a large multiple of its fee in first-year accelerated deductions, or you do not pay, a minimum of 30 to 1 on short-term rentals.
Is this an audit red flag?
The IRS publishes the Cost Segregation Audit Techniques Guide, the methodology examiners use to review these studies, so nothing about the approach is hidden. Every study is engineer-prepared and fully documented, and our engineering team answers your tax professional's written technical questions about it at no charge. Your own tax professional represents you before the IRS.
Is this legal?
Component depreciation traces to the IRS loss in Hospital Corporation of America v. Commissioner in 1997, and the IRS publishes an Audit Techniques Guide describing how these studies are done. The method classifies a building's components at their correct depreciation lives.
I bought two years ago. Too late?
A Form 3115 change in accounting method takes the depreciation missed in prior years as a single 481(a) adjustment in the current year, with no amended returns. The look-back rule covers property bought last year or ten years ago. Your CPA applies it.
What about when I sell?
Accelerating depreciation can increase what is recaptured when you sell. That is a fair question. The trade is a larger deduction now against more recapture at sale, and a 1031 exchange can defer the recapture. Your CPA models how the two net for your hold.
Does my CPA get replaced?
No. We deliver the engineering: the completed study with every component classified and documented. Your CPA takes that deliverable and files it. We work alongside your CPA, not around them.