2114 Kinney Avenue, Austin, TX 78704
| Property type | Short-Term Rental · Single-Family Residence |
|---|---|
| Year built | 1948 |
| Square feet | 2,280 |
| Beds | 3 |
| Baths | 2 |
| Lot size | 6,600 sqft |
| Parcel | 0301050712 |
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 2114 Kinney Avenue, Austin, TX 78704, a single-family home placed in service Jun 12, 2025, operated as a short-term rental. The owner uses it 28% as a rental and 72% personally, so the study runs on the 28% rental share of the depreciable basis. Depreciation runs on the 39-year transient-occupancy schedule, applied to a depreciable basis of $192,080 ($294,000 land excluded from $980,000 total). The residual structural shell is classified as 39-year nonresidential real property because the property is operated as transient lodging.
| Tax year | Detail | Deduction | Cumulative |
|---|---|---|---|
| Year 1 | FY 2025 · Short-life + shell (partial) | $33,365 | $33,365 |
| Year 2 | FY 2026 · Short-life MACRS + 39-yr shell | $13,396 | $46,761 |
| Year 3 | FY 2027 · Short-life MACRS + 39-yr shell | $9,620 | $56,381 |
| Year 4 | FY 2028 · Short-life MACRS + 39-yr shell | $7,329 | $63,710 |
| Year 5 | FY 2029 · Short-life MACRS + 39-yr shell | $7,258 | $70,968 |
| Years 6–40 | FY 2030–2064 · Short-life MACRS + 39-yr shell | $121,118 | $192,086 |
| Year 6 | FY 2030 · Short-life MACRS + 39-yr shell | $5,534 | $76,502 |
| Year 7 | FY 2031 · Short-life MACRS + 39-yr shell | $3,844 | $80,346 |
| Year 8 | FY 2032 · Short-life MACRS + 39-yr shell | $3,844 | $84,190 |
| Year 9 | FY 2033 · Short-life MACRS + 39-yr shell | $3,845 | $88,035 |
| Year 10 | FY 2034 · Short-life MACRS + 39-yr shell | $3,844 | $91,879 |
| Year 11 | FY 2035 · Short-life MACRS + 39-yr shell | $3,845 | $95,724 |
| Year 12 | FY 2036 · Short-life MACRS + 39-yr shell | $3,844 | $99,568 |
| Year 13 | FY 2037 · Short-life MACRS + 39-yr shell | $3,845 | $103,413 |
| Year 14 | FY 2038 · Short-life MACRS + 39-yr shell | $3,844 | $107,257 |
| Year 15 | FY 2039 · Short-life MACRS + 39-yr shell | $3,845 | $111,102 |
| Year 16 | FY 2040 · Short-life MACRS + 39-yr shell | $3,572 | $114,674 |
| Year 17 | FY 2041 · 39-yr shell | $3,300 | $117,974 |
| Year 18 | FY 2042 · 39-yr shell | $3,300 | $121,274 |
| Year 19 | FY 2043 · 39-yr shell | $3,300 | $124,574 |
| Year 20 | FY 2044 · 39-yr shell | $3,300 | $127,874 |
| Year 21 | FY 2045 · 39-yr shell | $3,300 | $131,174 |
| Year 22 | FY 2046 · 39-yr shell | $3,300 | $134,474 |
| Year 23 | FY 2047 · 39-yr shell | $3,300 | $137,774 |
| Year 24 | FY 2048 · 39-yr shell | $3,300 | $141,074 |
| Year 25 | FY 2049 · 39-yr shell | $3,300 | $144,374 |
| Year 26 | FY 2050 · 39-yr shell | $3,300 | $147,674 |
| Year 27 | FY 2051 · 39-yr shell | $3,300 | $150,974 |
| Year 28 | FY 2052 · 39-yr shell | $3,300 | $154,274 |
| Year 29 | FY 2053 · 39-yr shell | $3,300 | $157,574 |
| Year 30 | FY 2054 · 39-yr shell | $3,300 | $160,874 |
| Year 31 | FY 2055 · 39-yr shell | $3,300 | $164,174 |
| Year 32 | FY 2056 · 39-yr shell | $3,300 | $167,474 |
| Year 33 | FY 2057 · 39-yr shell | $3,300 | $170,774 |
| Year 34 | FY 2058 · 39-yr shell | $3,300 | $174,074 |
| Year 35 | FY 2059 · 39-yr shell | $3,300 | $177,374 |
| Year 36 | FY 2060 · 39-yr shell | $3,300 | $180,674 |
| Year 37 | FY 2061 · 39-yr shell | $3,300 | $183,974 |
| Year 38 | FY 2062 · 39-yr shell | $3,300 | $187,274 |
| Year 39 | FY 2063 · 39-yr shell | $3,300 | $190,574 |
| Year 40 | FY 2064 · 39-yr shell | $1,512 | $192,086 |
| Total over 40 years | $192,086 | ||
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
$63,386 of short-life property, accelerated out of the $192,080 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$48,020
Property-wide$48,018
| Appliances & FF&E | ||
| Carpet and flooring (non-permanent) | $8,003 | Archetype |
| Window treatments | $8,003 | Archetype |
| Cabinetry (non-permanent) | $8,003 | Archetype |
| Appliances | $8,003 | Archetype |
| Decorative lighting | $8,003 | Archetype |
| Linens and decor (non-permanent) | $8,003 | Archetype |
15-year land improvements$15,366
Property-wide$15,366
| Site & land improvements | ||
| Driveway and walkways | $5,122 | Archetype |
| Landscaping (depreciable) | $5,122 | Archetype |
| Fencing | $5,122 | Archetype |
39-year nonresidential shell$128,694
Property-wide$128,694
| Structure & envelope | ||
| Residential rental building | $128,694 | Archetype |
What each state does with this deduction
Each state this study touches, classified by how it treats the federal year-one deduction.
No individual income tax; the federal deduction is the whole story for Texas.
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 · 0301050712 | Verified |
| IRS authorities | Classification & recovery periods | Cross-referenced per component | Verified |
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 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: OBBBA cutoff missed (PIS on/after 2025-01-20 but acquired before 2025-01-20). |
| Land allocation | $294,000 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. |
| 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) |
| 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 |
| REV_RUL Rev. Rul. 2003-81 | Rev. Rul. 2003-81, 2003-2 C.B. 126 |
| REG Treas. Reg. §1.167(a)-1 | Treas. Reg. §1.167(a)-1 |
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.