If I own and rent out a condominium complex as short-term vacation rentals, can I still do a cost segregation study?
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.
Contact Engineered Tax Services here or your director to answer any questions you may have or to receive a complimentary benefit analysis.