U Unlevered
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A host-to-host webinar

The host's guide to

Cost Seg + Asset Depreciation

A practical framework and simple overview.

A lakeside cabin in the woods
Your host

Bola A.

11.5 years at Airbnb
Experiences, Services, Homes, Luxe, Olympics, Revenue Ops & Systems Builder.
13+ years hosting
Bola A. 👋✨
My listings
The Timber Ridge at Sea Ranch, California — Superhost, 64 reviews The Salt House, Private Beach — Marion, Massachusetts, Superhost, 16 reviews
What we'll do

Agenda

01
Ice breaker
Two quick games using real host scenarios.
02
Cost seg overview
What it is, what qualifies, and why it exists.
03
Does this make sense for you?
Scenarios, look-backs, remodels, and risks.
Let's play · five scenarios

Guess the Y1 deduction

I'll show a property and a few facts. You guess the year-one deduction — then reveal it.

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Year-one deduction
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Est. tax savings
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Let's play · match to category

Guess the category

For each component, call it: 5-year, 15-year, or 27+. Drop your guess in the chat, then tap to reveal.

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5
15
27+
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The answer key

Where each one lands

Orange is its class. 5- and 15-year property takes 100% bonus in year one — the structure does not.

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5
15
27+
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What is cost
segregation?

A little history

Cost segregation = asset depreciation

100+ yrs
Depreciation has been in the U.S. tax code for more than a century.
1999
Cost segregation was formally accepted by the IRS.
2002
Bonus depreciation began, starting at 30%.
2017 → 2025
100% bonus came from the 2017 Tax Cuts and Jobs Act, later restored for qualified property acquired after Jan 19, 2025.

Depreciation, simply: the loss of a vehicle's value over time — aging, mileage, wear and tear, and market demand.

A pristine vintage SUV The same SUV, weathered and rusted
Inside the building

Different components have different useful life

5-year property
Personal property
Personal property
Appliances · carpeting · movable furniture · decorative lighting · some fixtures
100% bonus eligible
15-year property
Land improvements
Land improvements
Landscaping · driveways · walkways · sprinklers · fencing
100% bonus eligible
27.5 / 39-year
The structure
The structure
Roof · framing · foundation · drywall · structure
Standard schedule

The things that break down faster than your foundation? You can expense them right away — so you can keep reinvesting and improving the property.

What the study actually does

One building becomes multiple asset classes

Before
One structure
Depreciated over 27.5–39 years
After the study
5-yrPersonal property
15-yrLand improvements
27.5+The structure — still the largest bucket
The gate many people miss

To use the deduction, you have to qualify

The deduction only helps if your tax situation lets you use it against income. Generally, one of two paths.

Path A
Short-term rental treatment
An average guest stay of 7 days or less.
Path B
Real estate professional status
Often achieved through a spouse who is materially involved in the business.
Material participation can be as little as ~100 hours a year — about 2 hours a week — even with a full-time W-2 job.
My time at my Airbnb role was worth about $500 / hour. The depreciation worked out closer to $5,000 / hour. Once I did that math, it was a no-brainer.
Bola · your host
Case study · one of two paths

Meet Alex

New investor.
High-tax year.
Planning a remodel.

Alex wants to buy a property and remodel it — but he wants the remodel budget to work harder in year one.

Meet Alex
A property mid-remodel, studs exposed
Alex · focused on investing where he got immediate returns

~90% of the budget goes into 5- and 15-year assets

Appliances, lighting, cabinetry, landscaping, outdoor living — the pieces that depreciate fast. Alex spends the remodel budget on the things that write off now, and ends up with the nicest house on the block.

Outdoor sauna Chandelier Washer and dryer Landscape lighting Ceiling fan Dishwasher Outdoor kitchen Privacy fence Hot tub Living room furniture Refrigerator EV charger
The finished cabin
The nicest house on the block
Case study · the other path

Meet Nancy

Existing host.
Owned for years.
Never ran the study.

Nancy wants to upgrade her rental. She is facing competition and wants a facelift — timed properly, because she cannot float.

Meet Nancy
Nancy's rental — a craftsman home with an ADU over the garage
Her rental · craftsman + ADU
The smart move · look-back

Owned it for years? You can still catch up.

Using Form 3115 and a §481(a) adjustment, a look-back study lets you claim the accelerated depreciation you could have taken since the property was placed in service — all in the current year, without amending prior returns.

Honest guardrails

This is not for everyone

01
No meaningful income to offset
02
Too little basis, or too small a project
03
The economics do not justify the study

Every smart move here assumes a real tax bill and a scenario where the math actually works.

Let's talk

Your questions

Happy to walk through your scenario, live.

What if my spouse does not work?
What if I bought the property two years ago?
What does a study cost?
How do I know if I actually qualify?
Run a sample study Cost segregation made simple.

Educational illustration — not tax advice. Figures assume a cost seg study with 100% bonus depreciation and depend on your facts, qualification (STR material participation or REPS), and state conformity. Confirm with your CPA before acting.