Cost segregation for Flagstaff property investors
Mountain STR market with strong land-improvement components on lodge-style properties. Whether you own a single property or a portfolio in Flagstaff, an engineering-based cost segregation study reclassifies components of your building from 27.5- or 39-year real property into 5-, 7-, and 15-year MACRS class lives.
Under the One Big Beautiful Bill Act (OBBBA), 100% bonus depreciation has been restored for qualifying property acquired and placed in service after January 19, 2025 — meaning every dollar of accelerated property identified in your Flagstaff study can be deducted in year one. For a typical property in this market, that often translates to 20–35% of cost basis reclassified into shorter recovery periods.
Arizona market context
Arizona is one of the fastest-growing states for population and commercial development. Phoenix-area industrial, build-to-rent, and STR product see heavy cost segregation activity, with newer construction typically reclassifying 22–30% of basis.
Every TDA Flagstaff study is built off engineering takeoffs, RSMeans cost data, and the IRS Cost Segregation Audit Techniques Guide methodology.