Q&A: If a condominium complex is a short-term vacation rental, can I still do a cost segregation study?

Question:
If I own and rent out a condominium complex as short-term vacation rentals, can I still do a cost segregation study?


Answer:
Yes. However, short-term rentals vs long-term rentals depreciate differently. Although a condominium is considered a residential property and typically depreciates over 27.5 years, short-term rentals typically depreciate over 39 years.
Dwelling units rented for a duration of 30 days or less are considered transient (hotel, motel, rooming houses, etc.). If 20% or more of the units, in the entire building meet this definition, the entire property is depreciated using 39 years.


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