High earners are using Colorado short-term rentals and cost segregation to offset W-2 income. Move the sliders and see your number.
Illustration only. Assumes a typical cost segregation split (land 20% of price; about 28% of the building reclassified into 5- and 15-year property), 100% bonus depreciation, and that you qualify to use the loss against ordinary income. Your bracket is applied to the full deduction. Real results depend on the property, the study, your income and current law; confirm with your CPA.
Saved in year one on my own portfolio with this strategy. I underwrite every client deal with the tax benefit built in, so you see the number before you make an offer.
Not every STR qualifies. Market, guest profile and how it's run all matter.
How you participate in the first year decides whether the loss counts against your W-2.
A cost segregation study, timed correctly, is what creates the year-one deduction.
We walk through all three on a call, using a real property and your numbers.
Covest is a licensed real estate brokerage, not a tax or legal advisor. This page is general education, not tax advice. Confirm any strategy with your CPA before you buy.