Why hotels and hospitality assets reclassify well in Florida
Florida has no state income tax, the largest STR market in the country, and rapid population growth. Cost segregation activity is heavy across hospitality, STRs, multifamily, and industrial — with hospitality reclassifications routinely exceeding 30%.
Hotels & Hospitality properties have a particular profile that makes cost segregation especially valuable: FF&E, decorative finishes, kitchen and pool systems — the highest-yielding category. The shell sits on a 39-year recovery period under MACRS — but every hotels & hospitality is hundreds of components, many of which qualify for 5-, 7-, or 15-year recovery and accelerated bonus depreciation.
Typical reclassification ratio
For a hotels & hospitality in Florida, TDA studies typically reclassify 32–40% of depreciable basis. Combined with 100% OBBBA bonus depreciation on property acquired and placed in service after January 19, 2025, that translates the entire reclassified amount into a year-one deduction.
Florida markets we serve
We deliver hotels & hospitality cost segregation studies across Florida, including Miami, Jacksonville, Tampa, Orlando, St. Petersburg. Engineering-based methodology and RSMeans cost data on every engagement.