Before I recommend any tool to STR operators, I put it through the same evaluation I use for every operational decision: does it save time, does it save money, and does it give me reliable data to act on. The R.E. Cost Seg free calculator clears all three bars, and it takes about two minutes to use. Here is how to get real value out of it.
Why STR Operators Should Run This Before They Close
Most investors think about cost segregation after they own the property. That is backwards. The time to understand your potential tax savings is during due diligence, before you finalize your offer. Here is why it matters at that stage.
A cost segregation study reclassifies components of your property from the standard 27.5-year depreciation schedule into shorter buckets: 5 years for personal property like furniture and appliances, 15 years for land improvements like fencing and landscaping. With 100% bonus depreciation now permanently restored under the One Big Beautiful Bill Act, everything in those shorter categories can be written off entirely in year one.
For a furnished short-term rental, this is particularly powerful. A traditional long-term rental might have 15-20% of its purchase price in reclassifiable personal property. A furnished STR typically runs 25-35%, sometimes higher, because of all the furniture, kitchen equipment, entertainment systems, and decor that make a property bookable. More personal property means a larger first-year deduction.
Knowing that number before you close changes how you underwrite the deal. A $400,000 STR that generates $40,000 in year-one depreciation is a different investment than the same property generating $15,000. Run the calculator first.
How to Use the Calculator
The R.E. Cost Seg calculator is embedded below. No email required to get results.
A few inputs worth getting right for STR properties:
Property type. Select residential or hospitality depending on your property. Most single-family and small multifamily STRs fall under residential. Larger properties or those operating closer to hotel models may qualify as hospitality, which has different depreciation rules.
Purchase price vs. improvement cost. If you bought the property and are also doing a significant renovation before listing, include the improvement costs. Every dollar you put into qualifying improvements is eligible for reclassification too.
Year placed in service. Use the year you actually started renting it, not when you bought it. If you bought in December 2025 but did not list until March 2026, 2026 is your placed-in-service year.
Personal property estimate. If you are not sure how much of your purchase price is furniture and moveable fixtures, lean toward the higher end for furnished STRs. A well-equipped STR often comes in at 25-30% personal property when a qualified engineer does the full study.
What the Output Tells You
The calculator gives you a projected first-year depreciation deduction and an estimated tax savings based on your tax bracket. Treat these as a directional estimate, not a guaranteed outcome. The actual numbers from a full engineering-based study will vary based on what the engineer physically identifies and classifies.
What you are looking for is the order of magnitude. If the calculator shows $15,000 in projected first-year tax savings and a full study costs $6,000 to $8,000, that is a 2x return on the study fee in year one alone, before the cash flow from the property itself. That math usually justifies the study.
If the projected savings come back lower than the study cost, the calculator just saved you from a bad investment in a study. That is also useful information.
The STR Material Participation Angle
One more thing worth noting before you request a proposal. Cost segregation creates depreciation losses. To use those losses against your W-2 income or other active income, you generally need either Real Estate Professional Tax Status or material participation in your STR.
The good news: STRs with an average guest stay of seven days or fewer are not classified as passive rental activities under IRS rules. If you materially participate in managing your STR (and most hands-on operators do), those losses flow directly against active income. No REPS required. That is a significant advantage over long-term rentals and one of the reasons STR cost segregation math tends to be especially compelling for operators who are actively involved in their properties.
Talk to your CPA about your specific situation before you act on any of this. But go into that conversation with the calculator output in hand so you are working from real numbers rather than guesses.
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Request a Free Proposal
After you run the calculator, if the numbers look worth pursuing, you can request a free personalized cost segregation study proposal directly through the tool. R.E. Cost Seg covers short-term rentals, residential 1-4 units, multifamily, commercial, hospitality, medical, industrial, and retail properties.
Request a free cost segregation proposal from R.E. Cost Seg.
Affiliate disclosure: StaySTRA may earn a commission if you proceed with a study through R.E. Cost Seg, at no additional cost to you.
