55 La Gorce Circle, Miami Beach, FL 33141
| Property type | Short-Term Rental · Single-Family Residence |
|---|---|
| Year built | 2008 |
| Square feet | 6,200 |
| Beds | 6 |
| Baths | 6 + 2 half |
| Lot size | 19,000 sqft |
| Parcel | 02-3210-001-0450 |
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 55 La Gorce Circle, Miami Beach, FL 33141, a single-family home placed in service May 15, 2023, operated as a short-term rental. The entire property is in scope at 100% business use. Depreciation runs on the 39-year transient-occupancy schedule, applied to a depreciable basis of $2,945,000 ($775,000 land excluded from $3,720,000 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) | $1,071,309 | $1,071,309 |
| Year 2 | FY 2026 · Short-life MACRS + 39-yr shell | $69,262 | $1,140,571 |
| Year 3 | FY 2027 · Short-life MACRS + 39-yr shell | $68,623 | $1,209,194 |
| Year 4 | FY 2028 · Short-life MACRS + 39-yr shell | $59,189 | $1,268,383 |
| Year 5 | FY 2029 · Short-life MACRS + 39-yr shell | $50,063 | $1,318,446 |
| Years 6–38 | FY 2030–2062 · Short-life MACRS + 39-yr shell | $1,503,857 | $2,822,303 |
| Year 6 | FY 2030 · Short-life MACRS + 39-yr shell | $50,063 | $1,368,509 |
| Year 7 | FY 2031 · Short-life MACRS + 39-yr shell | $50,071 | $1,418,580 |
| Year 8 | FY 2032 · Short-life MACRS + 39-yr shell | $50,063 | $1,468,643 |
| Year 9 | FY 2033 · Short-life MACRS + 39-yr shell | $50,071 | $1,518,714 |
| Year 10 | FY 2034 · Short-life MACRS + 39-yr shell | $50,063 | $1,568,777 |
| Year 11 | FY 2035 · Short-life MACRS + 39-yr shell | $50,071 | $1,618,848 |
| Year 12 | FY 2036 · Short-life MACRS + 39-yr shell | $50,063 | $1,668,911 |
| Year 13 | FY 2037 · Short-life MACRS + 39-yr shell | $50,071 | $1,718,982 |
| Year 14 | FY 2038 · Short-life MACRS + 39-yr shell | $47,613 | $1,766,595 |
| Year 15 | FY 2039 · Short-life MACRS + 39-yr shell | $45,164 | $1,811,759 |
| Year 16 | FY 2040 · Short-life MACRS + 39-yr shell | $45,164 | $1,856,923 |
| Year 17 | FY 2041 · 39-yr shell | $45,164 | $1,902,087 |
| Year 18 | FY 2042 · 39-yr shell | $45,164 | $1,947,251 |
| Year 19 | FY 2043 · 39-yr shell | $45,164 | $1,992,415 |
| Year 20 | FY 2044 · 39-yr shell | $45,164 | $2,037,579 |
| Year 21 | FY 2045 · 39-yr shell | $45,164 | $2,082,743 |
| Year 22 | FY 2046 · 39-yr shell | $45,164 | $2,127,907 |
| Year 23 | FY 2047 · 39-yr shell | $45,164 | $2,173,071 |
| Year 24 | FY 2048 · 39-yr shell | $45,164 | $2,218,235 |
| Year 25 | FY 2049 · 39-yr shell | $45,164 | $2,263,399 |
| Year 26 | FY 2050 · 39-yr shell | $45,164 | $2,308,563 |
| Year 27 | FY 2051 · 39-yr shell | $45,164 | $2,353,727 |
| Year 28 | FY 2052 · 39-yr shell | $45,164 | $2,398,891 |
| Year 29 | FY 2053 · 39-yr shell | $45,164 | $2,444,055 |
| Year 30 | FY 2054 · 39-yr shell | $45,164 | $2,489,219 |
| Year 31 | FY 2055 · 39-yr shell | $45,164 | $2,534,383 |
| Year 32 | FY 2056 · 39-yr shell | $45,164 | $2,579,547 |
| Year 33 | FY 2057 · 39-yr shell | $45,164 | $2,624,711 |
| Year 34 | FY 2058 · 39-yr shell | $45,164 | $2,669,875 |
| Year 35 | FY 2059 · 39-yr shell | $45,164 | $2,715,039 |
| Year 36 | FY 2060 · 39-yr shell | $45,164 | $2,760,203 |
| Year 37 | FY 2061 · 39-yr shell | $45,164 | $2,805,367 |
| Year 38 | FY 2062 · 39-yr shell | $16,936 | $2,822,303 |
| Total over 38 years | $2,822,303 | ||
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. A catch-up also applies for depreciation under-claimed in prior years.
Show the year-by-year build-up
For each year since the property was placed in service, this compares depreciation actually taken against what the cost segregation study would have allowed. The cumulative shortfall is the catch-up above.
| Tax year | Depreciation taken | Allowed with study | Shortfall | Cumulative catch-up |
|---|---|---|---|---|
| 2023 | $61,350 | $1,010,006 | $948,656 | $948,656 |
| 2024 | $61,350 | $102,232 | $40,882 | $989,538 |
Component allocation
$1,183,612 of short-life property, accelerated out of the $2,945,000 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$768,429
Property-wide$541,248
| Appliances & FF&E | ||
| Carpet and flooring (non-permanent) | $90,208 | Archetype |
| Window treatments | $90,208 | Archetype |
| Cabinetry (non-permanent) | $90,208 | Archetype |
| Appliances | $90,208 | Archetype |
| Decorative lighting | $90,208 | Archetype |
| Linens and decor (non-permanent) | $90,208 | Archetype |
Multiple$152,179
| Appliances & FF&E | ||
| Custom cabinetry: kitchen, baths, bar | $90,000 | sample:miami#36 |
| Electrical | ||
| Decorative lighting package | $40,000 | sample:miami#37 |
| Soft costs | ||
| General contractor labor: capitalized (§263A allocated → 5-yr) | $22,179 | sample:miami#46 |
Kitchen$75,000
| Appliances & FF&E | ||
| Thermador appliance suite + outdoor kitchen | $75,000 | sample:miami#35 |
15-year land improvements$415,183
Property-wide$173,199
| Site & land improvements | ||
| Driveway and walkways | $57,733 | Archetype |
| Landscaping (depreciable) | $57,733 | Archetype |
| Fencing | $57,733 | Archetype |
Multiple$11,983
| Soft costs | ||
| General contractor labor: capitalized (§263A allocated → 15-yr) | $11,983 | sample:miami#46 |
Exterior$230,000
| Site & land improvements | ||
| Resort landscaping + irrigation | $85,000 | sample:miami#38 |
| Travertine pool deck + summer-kitchen patio | $70,000 | sample:miami#39 |
| Paver motor court + dock walkway | $50,000 | sample:miami#40 |
| Electrical | ||
| Landscape + dock lighting | $25,000 | sample:miami#41 |
39-year nonresidential shell$1,761,388
Property-wide$1,450,550
| Structure & envelope | ||
| Residential rental building | $1,450,550 | Archetype |
Multiple$250,838
| Structure & envelope | ||
| Impact windows + sliding glass walls | $80,000 | sample:miami#42 |
| Interior finishes | ||
| Porcelain + stone flooring throughout | $65,000 | sample:miami#43 |
| Plumbing | ||
| Spa-bath plumbing fixtures: six baths | $55,000 | sample:miami#44 |
| Soft costs | ||
| General contractor labor: capitalized (§263A allocated → 39-yr) | $50,838 | sample:miami#46 |
Structure$60,000
| HVAC / Mechanical | ||
| Variable-refrigerant HVAC + ductwork | $60,000 | sample:miami#45 |
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 Florida.
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 · 02-3210-001-0450 | 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.
$85,000 of indirect soft costs (architectural and engineering design, permits, and construction oversight) are capitalized into basis under §263A and allocated pro-rata across the depreciable asset classes in proportion to direct basis, rather than capitalized entirely to the building shell. $34,162 of that pool rides to 5- and 15-year property, where it is recovered on the same accelerated schedule as the components it supports.
| 5-year property | $22,179 |
|---|---|
| 15-year property | $11,983 |
| 39-year property | $50,838 |
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 | 80% IRC §168(k) first-year bonus depreciation. 80% bonus per TCJA phase-down (PIS 2023). |
| Land allocation | $775,000 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.