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

Why short-term rentals reclassify well in Texas

Texas has no state income tax and is the largest U.S. state for new commercial construction. Heavy industrial, multifamily, energy-sector, and hospitality activity make it the largest single state for cost segregation engagements.

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 Texas, 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.

Texas markets we serve

We deliver short-term rental (str) cost segregation studies across Texas, including Houston, San Antonio, Dallas, Austin, Fort Worth. Engineering-based methodology and RSMeans cost data on every engagement.