100% Bonus Depreciation Is Back! Here’s How to Use It
Summary
AI-generatedThis video explains the concept of bonus depreciation and how it has been reinstated at 100% for qualifying assets. It details how hosts can leverage this tax strategy for vehicles, real estate improvements through cost segregation, business equipment, and even Bitcoin mining rigs to significantly reduce taxable income.
Key insights
Bonus depreciation was scheduled to phase out to 20% in 2026 and 0% in 2027, but has now been made permanent at 100% for qualifying assets.
Mistakes to avoid
Failing to maintain proper documentation (invoices, usage logs, study reports) for bonus depreciation claims can lead to the IRS denying the deduction, resulting in penalties and further audits.
Tools & resources
Short-Term Rental Rule E-Bookbook
An e-book on short-term rental rules is available for download.
Frequently Asked Questions
Curated by Learn STR by GoStudioM · Summary & key insights generated by AI · Reviewed by editorial