Short-Term Rental (STR) cost segregation in Illinois.

Why short-term rentals reclassify well in Illinois

Illinois centers on Chicago — one of the largest U.S. industrial and multifamily markets. High state income tax rates make federal cost segregation deductions particularly valuable.

Short-Term Rental (STR) properties have a particular profile that makes cost segregation especially valuable: Airbnb / VRBO — pairs with the §469 STR strategy to offset W-2 income. The shell sits on a 27.5-year recovery period under MACRS — but every short-term rental (str) is hundreds of components, many of which qualify for 5-, 7-, or 15-year recovery and accelerated bonus depreciation.

Typical reclassification ratio

For a short-term rental (str) in Illinois, TDA studies typically reclassify 28–35% 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.

Illinois markets we serve

We deliver short-term rental (str) cost segregation studies across Illinois, including Chicago, Aurora, Naperville, Joliet, Rockford. Engineering-based methodology and RSMeans cost data on every engagement.