100% Bonus Depreciation Is Back — for Airbnb Investors
Signed into law in July 2025, OBBBA restores 100% bonus depreciation for qualifying property placed in service on or after Jan 19, 2025.
Key Benefits:
Get Expert Guidance
Connect with our network of Airbnb realtors and tax experts to maximize your bonus depreciation benefits.
Why investors choose short-term rental bonus depreciation strategy
Why This Matters Now
Congress has made a game-changing decision that directly impacts your Airbnb investment strategy
Congress Passed New Legislation in July 2025
Congress restored 100% bonus depreciation permanently in a landmark decision that represents a significant shift in tax policy. This directly benefits short-term rental property investors and other real estate professionals.
Phasing Out (2024-2025)
Bonus depreciation was rapidly declining, creating uncertainty and reduced tax benefits.
Permanent (2025+)
Bonus Depreciation
For qualifying property, permanently
Dramatically improved cash flow and reduced tax burden for investors.
Impact for STR Investors
You can now deduct these qualifying assets in Year One, dramatically improving your cash flow:
Furniture & Fixtures
Couches, beds, tables, decor
Appliances
Refrigerators, washers, dryers
Site Improvements
Landscaping, driveways, fencing
Short-Life Assets
Electronics, tools, equipment
Why Buy an Airbnb Rental Right Now
If you're shopping for an Airbnb rental, 2025 offers a rare combo: permanent 100% bonus depreciation, fresh depreciation schedules on a new purchase, and strong guest demand in top leisure markets. Here's why buyers are acting now:
Place in Service by Dec 31
Place in service by Dec 31 and accelerate eligible assets into Year 1—then collect income all next year.
Fresh Basis, Fresh Deductions
A new acquisition resets depreciation; combine with a cost seg to move more into 5/7/15-year buckets.
Higher Revenue Potential
Nightly pricing + seasonal surges can outpace typical long-term rents.
Personal Use Flexibility
Personal use flexibility while still operating as an investment (subject to your CPA's guidance).
Note: This is general info, not tax advice. State rules vary. Talk to your CPA.
Your 30-Day Close & Place-in-Service Timeline
Back into Dec 31 with a simple plan.
Foundation (Days 1-10)
Execution (Days 11-20)
Setup (Days 21-27)
Launch (Days 28-30)
Long-Term Landlord? Upgrade to an Airbnb Rental
Many landlords are 1031-exchanging appreciated assets into Airbnb rentals to defer gains and boost cash flow—while unlocking Year-1 deductions with bonus depreciation + cost seg.
Category
Your Long-Term Rental
Airbnb Rental (2025)
Annual Cash Yield
Year-1 Deductions
Depreciation Clock
Tax Flexibility
Exit Options
Ready to Upgrade Your Rental Portfolio?
The Airbnb Rental Tax Stack
Combine these four powerful tax strategies to maximize your deductions and minimize your tax liability on your Airbnb rental investment.
1031 Exchange
Defer capital gains into your new Airbnb rental.
100% Bonus Depreciation
Accelerate short-life assets in Year 1.
Cost Segregation
Engineering study to identify 5/7/15-year property.
Material Participation
Potential treatment of losses—talk to your CPA.
Ready to Optimize Your Tax Strategy?
Book a free consultation to see how much you could save with cost segregation on your Airbnb rental.
How STR Investors Use It
Follow these three simple steps to maximize your bonus depreciation benefits
- 1
Buy & Furnish
Acquire your STR and get it guest-ready (beds, sofas, appliances).
- 2
Place in Service
Go live on Airbnb or Vrbo by December 31, 2025.
- 3
Cost Seg Study
Have an engineering-based cost segregation study done.
Estimate Your Year-1 Deductions
Get a quick estimate of your potential bonus depreciation deductions with our simplified calculator
Estimated Year-1 Deductions
Get a professional cost segregation study for accurate calculations
What Qualifies for Bonus Depreciation?
Bonus Depreciation Resources
Stay informed with the latest insights, strategies, and expert guidance on bonus depreciation for short-term rental properties. Discover how to maximize your tax savings and accelerate depreciation schedules with 100% bonus depreciation.
Cost Segregation and 100% Bonus Depreciation Under the Big Beautiful Bill in 2025 (with Case Study)
9/3/2025
CASE STUDY
Supercharging Short-Term Rental Returns with Cost Segregation and Bonus Depreciation in 2025
9/3/2025
Is Cost Segregation Worth It for STRs Below $400K? A Case Study on a California Property
9/3/2025Frequently Asked Questions
Ready to Buy, Place, and Bonus in 2025?
We'll match you with a market-savvy Airbnb rental agent and connect you with a bonus depreciation expert.
