Bonus Depreciation Is Back — Here’s How STR Owners Can Use It
The One Big Beautiful Bill Act (OBBBA) restored 100% bonus depreciation for assets placed in service from 2025 through 2027. For STR investors, this is a major tax planning opportunity that can dramatically reduce taxable income. Here’s how it works—and how to take advantage of it.
Why Bonus Depreciation Matters for STR InvestorsShort-term rentals include a wide range of depreciable assets, such as:
- Furniture Appliances
- Décor and electronics
- Flooring and lighting Interior
- HVAC components
Non-Passive Status Required
To use bonus depreciation against W-2 or active income, your STR must be non-passive. That requires meeting material participation under §469.Staylah helps protect this through:
- Proper role boundaries
- Owner decision authority
- Strong documentation
- Strategy meeting records
- Placed-in-Service
The IRS requires evidence that your property was ready for rent, including:
- Photos
- Inspection reports
- Listing activation
- Cleaning logs
- Renovation completion records
A Limited Window of Opportunity
100% bonus depreciation doesn’t last forever—it phases down after 2027.Investors planning renovations, upgrades, or new acquisitions should consider timing them to take advantage of this window.
Want to explore cost segregation or bonus depreciation for your STR?
Staylah provides the operational documentation and property readiness records that CPAs and cost segregation firms rely on. Connect with us to begin planning your tax strategy.
