3614 Larkspur Court, Baldwin Park, CA 91706
| Property type | Short-Term Rental · Single-Family Residence |
|---|---|
| Year built | 1949 |
| Square feet | 2,163 |
| Lot size | 8,868 sqft |
| Parcel | 8417-022-009 |
Executive summary
This study reclassifies a portion of the property's depreciable basis from 39-year nonresidential into shorter recovery periods, accelerating deductions into year one under current bonus depreciation rules.
Basis of this study. This study covers 3614 Larkspur Court, Baldwin Park, CA 91706, a single-family home placed in service Jul 6, 2025, operated as a short-term rental. The owner uses it 33% as a rental and 67% personally, so the study runs on the 33% rental share of the depreciable basis. Depreciation runs on the 39-year transient-occupancy schedule, applied to a depreciable basis of $194,344 ($490,678 land excluded from $1,079,600 total). The residual structural shell is classified as 39-year nonresidential real property because the property is operated as transient lodging. Qualifying §1245 personal property and 15-year land improvements are separately classified under MACRS.
| Tax year | Detail | Deduction | Cumulative |
|---|---|---|---|
| Year 1 | FY 2025 · Short-life + shell (partial) | $28,838 | $28,838 |
| Year 2 | FY 2026 · Short-life MACRS + 39-yr shell | $11,335 | $40,173 |
| Year 3 | FY 2027 · Short-life MACRS + 39-yr shell | $8,597 | $48,770 |
| Year 4 | FY 2028 · Short-life MACRS + 39-yr shell | $6,917 | $55,687 |
| Year 5 | FY 2029 · Short-life MACRS + 39-yr shell | $6,815 | $62,502 |
| Years 6–40 | FY 2030–2064 · Short-life MACRS + 39-yr shell | $131,845 | $194,347 |
| Year 6 | FY 2030 · Short-life MACRS + 39-yr shell | $5,547 | $68,049 |
| Year 7 | FY 2031 · Short-life MACRS + 39-yr shell | $4,328 | $72,377 |
| Year 8 | FY 2032 · Short-life MACRS + 39-yr shell | $4,328 | $76,705 |
| Year 9 | FY 2033 · Short-life MACRS + 39-yr shell | $4,329 | $81,034 |
| Year 10 | FY 2034 · Short-life MACRS + 39-yr shell | $4,328 | $85,362 |
| Year 11 | FY 2035 · Short-life MACRS + 39-yr shell | $4,329 | $89,691 |
| Year 12 | FY 2036 · Short-life MACRS + 39-yr shell | $4,328 | $94,019 |
| Year 13 | FY 2037 · Short-life MACRS + 39-yr shell | $4,329 | $98,348 |
| Year 14 | FY 2038 · Short-life MACRS + 39-yr shell | $4,328 | $102,676 |
| Year 15 | FY 2039 · Short-life MACRS + 39-yr shell | $4,329 | $107,005 |
| Year 16 | FY 2040 · Short-life MACRS + 39-yr shell | $3,935 | $110,940 |
| Year 17 | FY 2041 · 39-yr shell | $3,543 | $114,483 |
| Year 18 | FY 2042 · 39-yr shell | $3,543 | $118,026 |
| Year 19 | FY 2043 · 39-yr shell | $3,543 | $121,569 |
| Year 20 | FY 2044 · 39-yr shell | $3,543 | $125,112 |
| Year 21 | FY 2045 · 39-yr shell | $3,543 | $128,655 |
| Year 22 | FY 2046 · 39-yr shell | $3,543 | $132,198 |
| Year 23 | FY 2047 · 39-yr shell | $3,543 | $135,741 |
| Year 24 | FY 2048 · 39-yr shell | $3,543 | $139,284 |
| Year 25 | FY 2049 · 39-yr shell | $3,543 | $142,827 |
| Year 26 | FY 2050 · 39-yr shell | $3,543 | $146,370 |
| Year 27 | FY 2051 · 39-yr shell | $3,543 | $149,913 |
| Year 28 | FY 2052 · 39-yr shell | $3,543 | $153,456 |
| Year 29 | FY 2053 · 39-yr shell | $3,543 | $156,999 |
| Year 30 | FY 2054 · 39-yr shell | $3,543 | $160,542 |
| Year 31 | FY 2055 · 39-yr shell | $3,543 | $164,085 |
| Year 32 | FY 2056 · 39-yr shell | $3,543 | $167,628 |
| Year 33 | FY 2057 · 39-yr shell | $3,543 | $171,171 |
| Year 34 | FY 2058 · 39-yr shell | $3,543 | $174,714 |
| Year 35 | FY 2059 · 39-yr shell | $3,543 | $178,257 |
| Year 36 | FY 2060 · 39-yr shell | $3,543 | $181,800 |
| Year 37 | FY 2061 · 39-yr shell | $3,543 | $185,343 |
| Year 38 | FY 2062 · 39-yr shell | $3,543 | $188,886 |
| Year 39 | FY 2063 · 39-yr shell | $3,543 | $192,429 |
| Year 40 | FY 2064 · 39-yr shell | $1,918 | $194,347 |
| Total over 40 years | $194,347 | ||
Short-life property is deducted in full now; only the 39-year shell spreads forward.
How the asset depreciates
This year's deduction comes from reclassifying short-life property out of the building basis: the 5- and 15-year components take bonus depreciation now, and the rest depreciates on the regular schedule.
Component allocation
$56,172 of short-life property, accelerated out of the $194,344 depreciable basis. The rollup below organizes the full basis by recovery period, then by room, then down to each component and its verified source.
Recovery bucket → room → component line item.
5-year personal property$34,005
Property-wide$34,005
| Appliances & FF&E | ||
| Furniture - Beds / Bedroom Set | $4,198 | Engineering takeoff |
| Appliances · 6 draws | $4,103 | Engineering takeoff |
| Flooring · 2 draws | $4,093 | Engineering takeoff |
| Window Blinds / Roller Shades (movable) | $3,467 | Engineering takeoff |
| Furniture - Tables / Desks | $3,149 | Engineering takeoff |
| Base Cabinets | $3,005 | Engineering takeoff |
| Decor / Art / Rugs / Lamps | $2,576 | Engineering takeoff |
| Furniture - Sofas / Seating | $2,290 | Engineering takeoff |
| Television - Wall Mounted | $1,789 | Engineering takeoff |
| Marble or Granite, Countertop | $1,610 | Engineering takeoff |
| Wall/Upper Cabinets | $1,527 | Engineering takeoff |
| Kitchenware / Linens / Small Appliances | $1,145 | Engineering takeoff |
| Ceiling Fan, with Light | $1,053 | Engineering takeoff |
15-year land improvements$22,167
Property-wide$22,167
| Site & land improvements | ||
| Deck & patio · 2 draws | $8,854 | Engineering takeoff |
| General Landscaping | $7,954 | Engineering takeoff |
| Driveway (residential) | $3,949 | Engineering takeoff |
| Sidewalk, Concrete | $1,410 | Engineering takeoff |
39-year nonresidential shell$138,172
Property-wide$138,173
| Structure & envelope | ||
| Flooring · 3 draws | $22,916 | Engineering takeoff |
| Foundation · 2 draws | $20,362 | Engineering takeoff |
| Exterior Wall Construction, Wood Frame | $18,299 | Engineering takeoff |
| General HVAC System, Zoned A.C. | $17,886 | Engineering takeoff |
| Drywall & plaster · 2 draws | $12,452 | Engineering takeoff |
| Roofing & gutters · 3 draws | $10,836 | Engineering takeoff |
| Interior Plumbing Supply & Waste (building) | $9,631 | Engineering takeoff |
| General Building Electrical Service & Distribution | $8,255 | Engineering takeoff |
| Fireplace, Masonry | $8,110 | Engineering takeoff |
| Paint & finishes · 2 draws | $5,916 | Engineering takeoff |
| Exterior Wall Insulation | $1,926 | Engineering takeoff |
| Central / Tank Water Heater | $1,018 | Engineering takeoff |
| Residential Smoke Detector | $286 | Engineering takeoff |
| Bathroom Vanities | $280 | Engineering takeoff |
What each state does with this deduction
Each state this study touches, classified by how it treats the federal year-one deduction.
Lifetime difference: $0. Timing only, recovered in later years.
CA defers $19,305 of the deduction in year one, then returns it over the following years, reaching $0 by year 14. The lifetime deduction is the same; only the timing differs.
You still get the federal deduction now. California taxable income is $19,305 higher than federal in year one, but that amount is deducted in later years.
Use the federal schedule for the federal return and a California recomputation schedule for the CA return.
Schedule: CA FTB 3885A
Verified sources
Every figure traces to a primary source. This is the provenance behind the engineered review: what we relied on, what it established, and how we confirmed it.
| Source | What it verified | How | Status |
|---|---|---|---|
| County assessor record | Land vs. improvement allocation | Public parcel record · 8417-022-009 | Verified |
| Client photographs (29) | Existence & condition of reclassified assets | Engineer review | Verified |
| Engineering takeoff (modeled) | Per-component quantities & relative costs | Modeled from assessor facts + photo tags against a citation-backed cost catalog (RSMeans / Craftsman NCE / IRS ATG), then allocated to the depreciable basis | Pending |
| IRS authorities | Classification & recovery periods | Cross-referenced per component | Verified |
Client photos cross-referenced against component allocations. Each asset is tied to its MACRS classification and the permit or invoice that supports it.
- Ceiling fan with light kit5-YR PERSONAL
- Brick fireplace surround39-YR SHELL
- Windows (interior visible frames)39-YR SHELL
- Recessed ceiling lights39-YR SHELL
- Hardwood flooring39-YR SHELL
- Interior doors and frames39-YR SHELL
- Ceiling fan with light fixture5-YR PERSONAL
- Fireplace surround and brick facade39-YR SHELL
- Interior doors and door frames39-YR SHELL
- Recessed ceiling lights39-YR SHELL
- Wall paint and drywall finish (two-tone)39-YR SHELL
- Hardwood flooring39-YR SHELL
- Hardwood flooring39-YR SHELL
- Ceiling-mounted light fixture39-YR SHELL
- Wall finish and trim39-YR SHELL
- Closet doors (left wall)39-YR SHELL
- Interior barn door (right wall)39-YR SHELL
- Ceiling fan with integrated lighting5-YR PERSONAL
- Hardwood flooring39-YR SHELL
- Interior doors (passage and closet)39-YR SHELL
- Window units (double/multi-pane)39-YR SHELL
- Wall finish (drywall and paint)39-YR SHELL
- Built-in kitchen cabinetry5-YR PERSONAL
- Range/cooktop and wall oven5-YR PERSONAL
- Tile backsplash39-YR SHELL
- Kitchen sink and faucet39-YR SHELL
- Kitchen countertop39-YR SHELL
- Recessed ceiling lighting39-YR SHELL
- French-door refrigerator5-YR PERSONAL
- Stacked washer and dryer5-YR PERSONAL
- Toilet39-YR SHELL
- Glass shower enclosure39-YR SHELL
- Interior door39-YR SHELL
- Flooring39-YR SHELL
- Electrical outlet and switch39-YR SHELL
- Wall finish39-YR SHELL
- Toilet39-YR SHELL
- Flooring (tile)39-YR SHELL
- Shower enclosure (glass)39-YR SHELL
- Shower valve and hardware39-YR SHELL
- Tile wall finish39-YR SHELL
- Concrete garage flooring39-YR SHELL
- Garage door opener39-YR SHELL
- Garage door39-YR SHELL
- Drywall wall finish and ceiling39-YR SHELL
- Deck/patio railing15-YR LAND IMP.
- Driveway and walkway15-YR LAND IMP.
- Landscaping/shrubs15-YR LAND IMP.
- Exterior windows and doors39-YR SHELL
- Roof shingles39-YR SHELL
- Site landscape and vegetation15-YR LAND IMP.
- Asphalt shingle roof39-YR SHELL
- Exterior windows and doors39-YR SHELL
- Exterior wall siding and stucco39-YR SHELL
- Freestanding wooden cabinet5-YR PERSONAL
- Exterior entry door with glazed panel39-YR SHELL
- Hardwood flooring39-YR SHELL
- Interior passage door39-YR SHELL
- Wall finishes and paint39-YR SHELL
- Freestanding wooden cabinet5-YR PERSONAL
- Wall finishes (drywall/paint)39-YR SHELL
- Hardwood flooring39-YR SHELL
- Entry door with glass insert39-YR SHELL
Photo verification components
| Asset | Class | Identified by |
|---|---|---|
| Built-in kitchen cabinetry | 5-YR PERSONAL | AI vision · engineering-reviewed |
| Ceiling fan with integrated lighting | 5-YR PERSONAL | AI vision · engineering-reviewed |
| Ceiling fan with light fixture | 5-YR PERSONAL | AI vision · engineering-reviewed |
| Ceiling fan with light kit | 5-YR PERSONAL | AI vision · engineering-reviewed |
| Freestanding wooden cabinet | 5-YR PERSONAL | AI vision · engineering-reviewed |
| French-door refrigerator | 5-YR PERSONAL | AI vision · engineering-reviewed |
| Range/cooktop and wall oven | 5-YR PERSONAL | AI vision · engineering-reviewed |
| Stacked washer and dryer | 5-YR PERSONAL | AI vision · engineering-reviewed |
| Deck/patio railing | 15-YR LAND IMP. | AI vision · engineering-reviewed |
| Driveway and walkway | 15-YR LAND IMP. | AI vision · engineering-reviewed |
| Landscaping/shrubs | 15-YR LAND IMP. | AI vision · engineering-reviewed |
| Site landscape and vegetation | 15-YR LAND IMP. | AI vision · engineering-reviewed |
| Asphalt shingle roof | 39-YR SHELL | AI vision · engineering-reviewed |
| Brick fireplace surround | 39-YR SHELL | AI vision · engineering-reviewed |
| Ceiling-mounted light fixture | 39-YR SHELL | AI vision · engineering-reviewed |
| Closet doors (left wall) | 39-YR SHELL | AI vision · engineering-reviewed |
| Concrete garage flooring | 39-YR SHELL | AI vision · engineering-reviewed |
| Drywall wall finish and ceiling | 39-YR SHELL | AI vision · engineering-reviewed |
| Electrical outlet and switch | 39-YR SHELL | AI vision · engineering-reviewed |
| Entry door with glass insert | 39-YR SHELL | AI vision · engineering-reviewed |
| Exterior entry door with glazed panel | 39-YR SHELL | AI vision · engineering-reviewed |
| Exterior wall siding and stucco | 39-YR SHELL | AI vision · engineering-reviewed |
| Exterior windows and doors | 39-YR SHELL | AI vision · engineering-reviewed |
| Fireplace surround and brick facade | 39-YR SHELL | AI vision · engineering-reviewed |
| Flooring | 39-YR SHELL | AI vision · engineering-reviewed |
| Flooring (tile) | 39-YR SHELL | AI vision · engineering-reviewed |
| Garage door | 39-YR SHELL | AI vision · engineering-reviewed |
| Garage door opener | 39-YR SHELL | AI vision · engineering-reviewed |
| Glass shower enclosure | 39-YR SHELL | AI vision · engineering-reviewed |
| Hardwood flooring | 39-YR SHELL | AI vision · engineering-reviewed |
| Interior barn door (right wall) | 39-YR SHELL | AI vision · engineering-reviewed |
| Interior door | 39-YR SHELL | AI vision · engineering-reviewed |
| Interior doors (passage and closet) | 39-YR SHELL | AI vision · engineering-reviewed |
| Interior doors and door frames | 39-YR SHELL | AI vision · engineering-reviewed |
| Interior doors and frames | 39-YR SHELL | AI vision · engineering-reviewed |
| Interior passage door | 39-YR SHELL | AI vision · engineering-reviewed |
| Kitchen countertop | 39-YR SHELL | AI vision · engineering-reviewed |
| Kitchen sink and faucet | 39-YR SHELL | AI vision · engineering-reviewed |
| Recessed ceiling lighting | 39-YR SHELL | AI vision · engineering-reviewed |
| Recessed ceiling lights | 39-YR SHELL | AI vision · engineering-reviewed |
| Roof shingles | 39-YR SHELL | AI vision · engineering-reviewed |
| Shower enclosure (glass) | 39-YR SHELL | AI vision · engineering-reviewed |
| Shower valve and hardware | 39-YR SHELL | AI vision · engineering-reviewed |
| Tile backsplash | 39-YR SHELL | AI vision · engineering-reviewed |
| Tile wall finish | 39-YR SHELL | AI vision · engineering-reviewed |
| Toilet | 39-YR SHELL | AI vision · engineering-reviewed |
| Wall finish | 39-YR SHELL | AI vision · engineering-reviewed |
| Wall finish (drywall and paint) | 39-YR SHELL | AI vision · engineering-reviewed |
| Wall finish and trim | 39-YR SHELL | AI vision · engineering-reviewed |
| Wall finishes (drywall/paint) | 39-YR SHELL | AI vision · engineering-reviewed |
| Wall finishes and paint | 39-YR SHELL | AI vision · engineering-reviewed |
| Wall paint and drywall finish (two-tone) | 39-YR SHELL | AI vision · engineering-reviewed |
| Window units (double/multi-pane) | 39-YR SHELL | AI vision · engineering-reviewed |
| Windows (interior visible frames) | 39-YR SHELL | AI vision · engineering-reviewed |
Methodology calibrated to IRS standards
Component allocations follow the IRS Cost Segregation Audit Techniques Guide and MACRS recovery periods. Every assumption traces to a publicly cited authority.
The residual structural shell is depreciated as 39-year nonresidential real property. Operated as transient lodging (average guest stay ≤30 days), not residential rental property under IRC §168(e)(2)(A)(ii)(I). The tax use of the property controls the recovery period, not its physical form.
Statutory authority: IRC §168(e)(2)(A)(ii)(I) · IRC §168(e)(2)(B) · IRC §168(c).
The figures above are fixed by these study-specific inputs: the bonus rate is set by the placed-in-service and §168(k) acquisition dates, and any disposition is a taxpayer election. They carry through the entire study.
| Tax year of filing | 2025 MACRS recovery periods, conventions, and the bonus rate are applied as in effect for this filing year. |
|---|---|
| First-year bonus rate | 40% IRC §168(k) first-year bonus depreciation. 40% bonus per TCJA phase-down (PIS in 2025; acquired before the 2025-01-20 OBBBA cutoff, so the 100% restoration does not apply). |
| Land allocation | $490,678 Land is non-depreciable and excluded from the reclassified basis. |
| MACRS conventions | Mid-month / half-year The 39-year shell uses the mid-month convention; 5- and 15-year property uses the half-year (or mid-quarter) convention per IRS Pub. 946. |
| Component takeoff method | Modeled engineering estimate Absent contractor receipts, each component's quantity is modeled from the property's finished area, lot, and photo-confirmed features, priced against a citation-backed relative-cost catalog (RSMeans Residential / Craftsman National Construction Estimator / IRS Cost Segregation ATG), and allocated proportionally to the depreciable basis. The method reproduces an independent third-party engineered study for a comparable property within ~1 percentage point per recovery class. Preliminary, pending field verification. |
| Authority | How it applies to this study |
|---|---|
| STATUTE IRC §167 | IRC §167 |
| STATUTE IRC §168 | IRC §168 |
| REV_PROC Rev. Proc. 87-56 | Rev. Proc. 87-56, 1987-2 C.B. 674 |
| ATG Cost Seg ATG | IRS Cost Segregation Audit Technique Guide (revised 2017) |
| REG Treas. Reg. §1.167(a)-1 | Treas. Reg. §1.167(a)-1 |
| STATUTE IRC §168(e)(2) | IRC §168(e)(2) |
| CASE Whiteco | Whiteco Industries Inc. v. Commissioner, 65 T.C. 664 (1975) |
| CASE HCA | Hospital Corp. of America v. Commissioner, 109 T.C. 21 (1997), acq. 2000-2 C.B. xvi |
Engineered review pass
Every study runs through the same four-stage engineered review before release: produced by the cost segregation engine, independently re-computed, and cross-checked against IRS authorities and public records.
Source ingestion
Source facts and citations verified at intake.
Component classification
Components mapped to MACRS class lives per Rev. Proc. 87-56 + IRS ATG.
Reconciliation
Allocation sum reconciled to depreciable basis within tolerance.
Compliance check
Bonus eligibility, anti-churning, and completeness validated.
AI engineering review
The study is reviewed through an engineered QA workflow designed around IRS ATG review criteria, with human review of component classifications and cost reconciliations.
Independent re-computation
Allocations re-run by a second model and reconciled.
IRS-authority cross-check
Each component mapped to the IRS ATG, Rev. Proc. 87-56, and MACRS class lives.
Audit trail retained
Every source document and the full run log are retained for the audit-defense window.