Beach House Rental
$600,000
$228,639
$228,639
The property
A four-bedroom and four-bath beach house used for transient rentals with average guest stays of less than 30 days. The property includes furnished living areas, a garage game space, a pool, a paver patio, landscaping, fencing, and a fully equipped kitchen.
The study
Our team performed an engineering-based study and site inspection, identifying components eligible for 5- and 15-year depreciation. Shorter-life assets included appliances, furnishings, cabinetry-related components, decorative finishes, dedicated electrical and plumbing, the pool, pavers, gravel, landscaping, and fencing.
The result
The study reclassified approximately $229,000 into 5- and 15-year property. With 100% bonus depreciation available, the owner was able to accelerate more than 38% of the total depreciable basis into shorter recovery periods.