100% Bonus Depreciation is back — for Airbnb investors

No. Buildings are 27.5-year property. Bonus depreciation applies to short-life assets like furniture, appliances, and certain site improvements — not the structure.

Yes. Furniture, fixtures, and equipment typically qualify as 5-year assets.

State tax rules may differ (e.g., California does not conform). You may need to keep separate federal and state depreciation schedules. You can still benefit federally — consult your CPA for state-specific guidance.

No. "Ready and available for rent" counts as placed in service — a live listing with photos and furnishings is sufficient, even before the first guest books.

Property must be placed in service by December 31, 2026 to claim bonus depreciation deductions on your 2026 tax return.

Yes — 2026 is a uniquely favorable window. The One Big Beautiful Bill Act restored 100% bonus depreciation permanently, so new owners can accelerate deductions on short-life assets (furniture, appliances, site improvements) in Year 1. Combine that with strong guest demand in top vacation markets and you get both higher cash yields and immediate tax advantages.

Note: This is general information only — not tax advice. Always confirm details with your CPA.

Many landlords are selling appreciated long-term rentals and using a 1031 exchange to defer capital gains into an Airbnb rental. That move avoids an immediate tax hit and resets the depreciation clock. With a fresh basis, you can pair a cost segregation study with 100% bonus depreciation to accelerate large Year-1 deductions. The "tax stack":

• Defer gains with the 1031 exchange.
• Reset and accelerate depreciation with bonus depreciation.
• Boost cash flow through nightly pricing vs. traditional monthly rents.