B
Bola's Tax Co.
Cost segregation
35282 Timber Ridge Road
ULV-2024-FBAE · Delivered 2026-06-01T16:00:45.053262+00:00
B
Bola's Tax Co.
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Engineered review · calibrated to IRS standards
Cost Segregation Study · Tax Year 2024

35282 Timber Ridge Road

The Sea Ranch, CA, 95497
Prepared for
Thomas S.
Placed in service
Jun 15, 2024
Tax year
2024
Report ID
ULV-2024-FBAE
Property typeShort-Term Rental · Single-Family Residence
Year built1968
Square feet1,578
Section 01

Executive summary

This study reclassifies a portion of the property's depreciable basis from 27.5-year residential into shorter recovery periods, accelerating deductions into year one under current bonus depreciation rules.

Total deduction
USD849,048
$498,257 is deductible in year one: $180,426 of first-year depreciation plus a $317,831 partial-asset disposition write-off. The balance of the reclassified depreciation comes through over the rest of the schedule.
Total basis
$1,225,924
Land allocation
$376,875
Depreciable basis
$849,049
Short-life reclass
$264,529
Without cost seg
$16,724
Straight-line, 27.5-yr, partial year one
With this study
$498,257
29.8× larger first-year deduction
Deduction ledger
Tax yearDetailDeductionCumulative
Year 1FY 2024 · Disposition + short-life + shell (partial)$498,257$498,257
Year 2FY 2025 · 27.5-yr shell$36,498$534,755
Year 3FY 2026 · 27.5-yr shell$26,672$561,427
Year 4FY 2027 · 27.5-yr shell$20,689$582,116
Year 5FY 2028 · 27.5-yr shell$20,447$602,563
Total over 5 years$602,563

Short-life property is deducted in full now; only the 27.5-year shell spreads forward.

Section 02

How the asset depreciates

This year's deduction combines the remodel with the property's reclassified basis. On the remodel, the removed components are written off and the new build is depreciated.

Disposition write-off
$317,831 64%
Remaining tax basis of the components removed in the remodel, deducted in full this year as a partial asset disposition (Treas. Reg. §1.168(i)-8).
Bonus depreciation
$158,717 32%
60% first-year bonus on the property reclassified to 5- and 15-year recovery.
First-year MACRS depreciation
$21,709 4%
Regular first-year depreciation on the remaining basis, including the 27.5-year shell (mid-month, partial year).
The remodel, in numbers: disposition and replacement

Each remodeled area: the remaining undepreciated basis written off as a partial asset disposition (Treas. Reg. §1.168(i)-8), and the new capitalized replacement. Expand any row for the substantiating detail.

Remodeled areaDisposedReplacementNew total
Building systems (property-wide)$175,039$101,798$276,837
Original flooring: carpet, vinyl, and subfloor underlayment (fully replaced)$32,244$53,055$85,299
Original drywall, paint, and baseboards: structural wall substrate (property-wide strip)$32,244$14,000$46,244
Original plumbing rough-in: supply and drain piping (bathrooms and kitchen)$27,638$12,110$39,748
Original electrical rough-in: wiring, outlets, switches (bathrooms and kitchen rewired)$23,031$8,500$31,531
Original HVAC ducts and registers (rerouted during structural work)$18,425$535$18,960
Original ceiling finishes and insulation (penetrated for skylights and wall moves)$13,819property-wide$13,819
Original interior partition framing (walls removed or relocated)$13,819$6,800$20,619
Original interior doors and hardware (replaced throughout)$9,213$1,298$10,511
Termite-damaged structural framing (replaced)$4,606$5,500$10,106
Kitchen$36,850$52,915$89,765
Kitchen cabinetry and countertop$36,850$52,915$89,765
Living / dining$18,425$50,006$68,431
Living$18,425$50,006$68,431
Bathrooms$46,062$19,422$65,484
Tile wall surround and shower base$23,031$9,209$32,240
Tile shower enclosure with glass partition$23,031$10,213$33,244
Other scope$4,606$25,234$29,840
Interior passage door with frame$4,606property-wide$4,606
Other remodel scope: room not specified$0$25,234$25,234
Exterior & grounds$13,819$12,386$26,205
Exterior deck with composite/wood decking$13,819$12,386$26,205
Bedrooms$9,213$13,380$22,593
Vertical shiplap wall paneling$9,213$13,380$22,593
Loft$9,213$11,905$21,118
Loft$9,213$11,905$21,118
Foyer$4,606$3,133$7,739
Foyer$4,606$3,133$7,739
Garage$0$6,366$6,366
Garage$0$6,366$6,366
Remodel total · year-one$317,833$296,545$614,378

“property-wide” marks an area whose replacement spend is itemized across Building systems and Other scope above, not at the room level: the remodel receipts were recorded by trade rather than by room, so the new capitalized spend for that area is captured in those property-wide totals, not absent.

Section 03

Component allocation

$264,529 of short-life property. The rollup below organizes it by recovery period, then by room, then down to each component and its verified source.

Allocation review. These recovery buckets sit outside the typical range for this property type. Verify the supporting line items before signing: 27.5-year residential shell 50% vs 67% (-17 pp).
5- & 15-year short-life · by room
Property-wide$83K31%
Garage Work, Floor Install, Range Hood & Skylights$18,790
Carpet and flooring (non-permanent)$8,043
Window treatments$8,043
Cabinetry (non-permanent)$8,043
Appliances$8,043
Decorative lighting$8,043
Linens and decor (non-permanent)$8,043
Driveway and walkways$5,148
Landscaping (depreciable)$5,148
Fencing$5,148
Labor Installing and Re-Routing Dryer Vents$535
Exterior$75K28%
Projected Deck & Landscape Costs$63,000
Sofa: Portside Outdoor SofaDunes Teak 3-Piece Sofa$2,799
Outdoor Dining Table: Dunes Teak Dining Set, Table with 2 Benches$2,199
Lounge Chairs: Dunes Teak Lounge Chair, Set of 2$1,819
Adirondack Chairs: Paso Natural Teak Wood Outdoor Adirondack Chair$1,733
Front Area Lounge Chairs: Moore POLYWOOD Outdoor Patio Chair, Adirondack Chair - Threshold™$864
Front Area Fire Pit: Aidan Outdoor Round Lightweight Concrete Gas Burning Fire Pit$581
Coffee Table: Pinet Teak Outdoor Coffee Table By Ross Cassidy$546
Outdoor Console: Adagio Outdoor Solid Teak Wood Bar Cart Island$517
Grill: Fuego Grill$359
Side Tables: Novato Indoor/Outdoor Cement Side Table$241
Breezeway Rug: Everyspace Recycled Waterhog Runner, Trees$200
Outdoor Sconces: Godin Wall Light$175
Rug: Sezis Solid Color Rug$142
Light Bulbs: Phillips Hue Bulb$130
Shoe Tray$69
Towel Hooks: Robe & Towel Hook, 6 Pack Heavy Duty Stainless Steel Outdoor Wall Hooks$14
Kitchen$46K17%
Kitchen Cabinetry & All Custom Built-Ins$30,000
Induction Range: Bosch 800 Series HII8057U 30 Inch Slide-In Induction Range with 4 Elements$4,738
Refrigerator: 22 Inch Panel Ready Built-In Bottom Mount Smart Refrigerator$2,999
Cabinet Hardware-Knobs: Brushed Nickel Solid Brass Handles, Thin Cylinder Bar Handle$2,525
Cabinet Hardware-Appliance Pulls: Brushed Nickel Solid Brass Handles, Thin Cylinder Bar Handle$1,694
Dishwasher: Bosch 800 Series SHV78B73UC$1,413
Counter Stools: Range Counter Stool$1,136
Exhaust: Bosch 300$668
Dinnerware: SwoonCB2$315
Dutch Oven: 5.5 Quart Classic Dutch Oven$123
Living / Dining$28K11%
Sofa: The Breuer Sofa$5,377
New Wood Burning Stove: Supreme Novo 18 Wood Burning Stove$3,420
Lounge Chairs: The Hayes Chair$2,863
Dining Table: Dining Table$2,748
Dining Chairs: RIDLEY DINING CHAIR$2,508
Coffee Table: Kyoto Coffee Table$1,559
Ceiling Pendant Lights: Contemporary Pendant Lamp 'Alley' by AGO 'Large, Mustard$1,299
TV: LG - 50" Class 75 Series QNED 4K UHD Smart webOS TV$1,281
Fireplace Hearth Tile: Square Cotto Allende$1,171
Fireplace Extension Tile: Square Cotto Allende$977
Low Shelving Behind Sofa: Kona Bench$957
Rug: Taylor Washable Wool Rug$808
Upholstered Ottomans: Barrow Upholstered Pouf$790
Floor Lamp: Arbor Floor Lamp$699
Floor Lamp: Arbor Floor Lamp$699
Audio: AudioPro A28$324
Hearth Bench Cushion: Custom Upholstery for Hearth$300
Rug: Natural Kate$198
Rug Pad: RUGPADUSA 9'x12' 1/2" Thick Felt Rug Pad$140
Sheepskin: Luxe Faux Fur Double Length Hide$121
Loft$12K5%
Floors: Carpet$3,924
Modular Ottomans: HAY Mags Ottoman$2,367
Mattresses: Leesa Original Mattress$1,332
Low Coffee Table Benches: Kona Display Table$852
Projector: SAMSUNG 30" - 100" The Freestyle 2nd Gen with Gaming Hub Smart Portable Projector$606
Sheets: European Linen Sheet Set$520
Twin Bed Platforms: LYNGÖR Foundation, Twin$386
Wood Stools: Colin King Acacia Wood 3-Leg Side Table$328
Duvet Cover: European Linen Duvet Cover$280
Quilts: Natural$280
Turntable: Sony PS-LX310BT Belt Drive Turntable$248
Comforter: Premium Down Alternative Comforter$200
Floor Lamp: Mooney Floor Lamp (34")$185
Loft Pendant: CONICK FLUSH MOUNT$150
Projector Screen: Elite Screens Manual B, 80-INCH Manual Pull Down Projector Screen$111
Audio: AudioPro A10$107
Pillow Protectors: 100% Cotton Pillow Protectors (Set of 2)$30
Primary Bedroom$7K3%
Mattress: Leesa Original Mattress$1,243
Bed: Basi Oak King Bed Frame$947
Dresser: REPLAY CHEST$861
Desk Chair: LISBON DINING CHAIR$679
Duvet: Premium Down Alternative Comforter$650
Bedding: European Linen Sheets$450
Rug: Tschudi Washable Wool Rug$425
Bedside Lights: Roland Table Lamp$338
Pillows: Quince Down Pillow$238
Bedding: European Linen Quilt Set$230
Bedding: European Linen Duvet Cover$160
Ottoman: Minze 22.05" Wide Round Pouf Ottoman$139
Audio: AudioPro A10$107
Rug Pad: RUGPADUSA 9'x12' 1/2" Thick Felt Rug Pad$80
Mattress Protector: Waterproof Mattress Protector$40
Desk Lamp: FADO$30
Secondary Bedroom$6K2%
Mattress: Leesa Original Mattress$1,243
Nightstands: Gavin 2-Drawer Oak Wood Left And Right Nightstands Set Of 2$827
Bed: Basi Oak King Bed Frame$785
Bench: Invitation 48" Bench$662
Rug: Hart Jute Rug$468
Bedding: European Linen Sheets$450
Bedside Lights: Esse Table Lamp in Teal from Plato Design$376
Pillows: Quince Down Pillow$238
Bedding: European Linen Quilt Set$230
Bedding: European Linen Duvet Cover$160
Duvet: Premium Down Alternative Comforter$150
Audio: AudioPro A10$107
Mirror: 24x48 Mirror$105
Rug Pad: RUGPADUSA 9'x12' 1/2" Thick Felt Rug Pad$100
Matttress Protector: Waterproof Mattress Protector$40
Garage$2K1%
Dryer: 7.4 Cu. Ft. Vented SMART Stackable Gas Dryer in White with TurboSteam and Sensor Dry Technology$1,036
Washer: 4.5 Cu. Ft. Stackable SMART Front Load Washer in White with Steam and TurboWash360 Technology$875
Light Fixture: Nautical White Dome$55
Foyer$2K1%
Hallway Wall Sconces: Orb Slim Surface Mount$598
Mirror: Bruno Oak Mirror$354
Outdoor Bench: Hot Mesh Bench$307
Outdoor Light: Carrier Portable Lamp$270
Entryway Console Table: Wood Console Sofa Table Black Oak$146
Shoe Mat: Black Large Shoe & Boot Tray$69
Stool$50
Hallway Bathroom$2K1%
Wall Sconces: RanorLightingDesign Wall Sconce$536
Mirror: Rounded Rectangle Metal Framed Mirror$359
Bath Towels: Organic Turkish Waffle Bath Towel Bundle$270
Light: In Bathroom Light$167
Shower Ceiling Flush Mount: RanorLightingDesign Wall Sconce$146
Bath Mat: Adela Teak Shower Mat$115
Hooks: Hewi Wall Hooks - Set of 3$68
Hardware for Cabinet: Essential Drawer Pull$25
En-Suite Bathroom$2K1%
Mirror: Leo Mirror - Round$439
Bath Towels: Organic Turkish Waffle Bath Towel Bundle$270
Flush Mount Small—Toilet Room: RanorLightingDesign Wall Sconce$268
Mirror: ALTO MIRROR$187
Vanity Sconce: COLORCREATIONStudio1 3 Light Vanity Wall Light$185
Stool: Yamako Bath Chair$66
Bath Mat: Simple Striped Terry Bath Mat$52
Towel Bar: Essential Towel Bar$51
Hooks: Metal Hook Matte Black - Brightroom™$16
Kids Room$8240%
Pendant Light: Vintage Enameled Field Tent Cord Pendants$179
Shelf: Unfnshd$146
Cot Quilt$140
Shelves: Modern Shelf$105
Rug: Australian Single Sheepskin Rug$80
Nap Cot: Sportsmans Guide$70
Custom Pennant: Custom Sea Ranch Pennant$45
Sheets: Olive Green$41
Mattress Protector: White$18
Allocation rollup

Recovery bucket → room → component line item.

5-year personal property$186,085
Property-wide$67,583
Appliances & FF&E
Garage Work, Floor Install, Range Hood & Skylights$18,790doc:67d806c3-d24a-4340-9863-4d893152ebfd#12
Labor Installing and Re-Routing Dryer Vents$535doc:67d806c3-d24a-4340-9863-4d893152ebfd#32
Carpet and flooring (non-permanent)$8,043Archetype
Window treatments$8,043Archetype
Cabinetry (non-permanent)$8,043Archetype
Appliances$8,043Archetype
Decorative lighting$8,043Archetype
Linens and decor (non-permanent)$8,043Archetype
Exterior$12,388
Appliances & FF&E
Outdoor Dining Table: Dunes Teak Dining Set, Table with 2 Benches$2,199doc:40d1911c-69d6-45b4-850c-86ac6c692948#151
Sofa: Portside Outdoor SofaDunes Teak 3-Piece Sofa$2,799doc:40d1911c-69d6-45b4-850c-86ac6c692948#152
Lounge Chairs: Dunes Teak Lounge Chair, Set of 2$1,819doc:40d1911c-69d6-45b4-850c-86ac6c692948#153
Adirondack Chairs: Paso Natural Teak Wood Outdoor Adirondack Chair$1,733doc:40d1911c-69d6-45b4-850c-86ac6c692948#154
Coffee Table: Pinet Teak Outdoor Coffee Table By Ross Cassidy$546doc:40d1911c-69d6-45b4-850c-86ac6c692948#155
Rug: Sezis Solid Color Rug$142doc:40d1911c-69d6-45b4-850c-86ac6c692948#156
Front Area Lounge Chairs: Moore POLYWOOD Outdoor Patio Chair, Adirondack Chair - Threshold™$864doc:40d1911c-69d6-45b4-850c-86ac6c692948#157
Front Area Fire Pit: Aidan Outdoor Round Lightweight Concrete Gas Burning Fire Pit$581doc:40d1911c-69d6-45b4-850c-86ac6c692948#158
Side Tables: Novato Indoor/Outdoor Cement Side Table$241doc:40d1911c-69d6-45b4-850c-86ac6c692948#159
Outdoor Console: Adagio Outdoor Solid Teak Wood Bar Cart Island$517doc:40d1911c-69d6-45b4-850c-86ac6c692948#160
Grill: Fuego Grill$359doc:40d1911c-69d6-45b4-850c-86ac6c692948#162
Towel Hooks: Robe & Towel Hook, 6 Pack Heavy Duty Stainless Steel Outdoor Wall Hooks$14doc:40d1911c-69d6-45b4-850c-86ac6c692948#163
Breezeway Rug: Everyspace Recycled Waterhog Runner, Trees$200doc:40d1911c-69d6-45b4-850c-86ac6c692948#164
Shoe Tray$69doc:40d1911c-69d6-45b4-850c-86ac6c692948#165
Electrical
Outdoor Sconces: Godin Wall Light$175doc:40d1911c-69d6-45b4-850c-86ac6c692948#150
Light Bulbs: Phillips Hue Bulb$130doc:40d1911c-69d6-45b4-850c-86ac6c692948#161
Kitchen$45,611
Appliances & FF&E
Induction Range: Bosch 800 Series HII8057U 30 Inch Slide-In Induction Range with 4 Elements$4,738doc:40d1911c-69d6-45b4-850c-86ac6c692948#4
Exhaust: Bosch 300$668doc:40d1911c-69d6-45b4-850c-86ac6c692948#5
Refrigerator: 22 Inch Panel Ready Built-In Bottom Mount Smart Refrigerator$2,999doc:40d1911c-69d6-45b4-850c-86ac6c692948#6
Dishwasher: Bosch 800 Series SHV78B73UC$1,413doc:40d1911c-69d6-45b4-850c-86ac6c692948#7
Kitchen Cabinetry & All Custom Built-Ins$30,000doc:67d806c3-d24a-4340-9863-4d893152ebfd#13
Cabinet Hardware-Knobs: Brushed Nickel Solid Brass Handles, Thin Cylinder Bar Handle$2,525doc:40d1911c-69d6-45b4-850c-86ac6c692948#46
Cabinet Hardware-Appliance Pulls: Brushed Nickel Solid Brass Handles, Thin Cylinder Bar Handle$1,694doc:40d1911c-69d6-45b4-850c-86ac6c692948#47
Counter Stools: Range Counter Stool$1,136doc:40d1911c-69d6-45b4-850c-86ac6c692948#48
Dinnerware: SwoonCB2$315doc:40d1911c-69d6-45b4-850c-86ac6c692948#49
Dutch Oven: 5.5 Quart Classic Dutch Oven$123doc:40d1911c-69d6-45b4-850c-86ac6c692948#50
Living / Dining$28,239
Appliances & FF&E
New Wood Burning Stove: Supreme Novo 18 Wood Burning Stove$3,420doc:40d1911c-69d6-45b4-850c-86ac6c692948#11
Fireplace Hearth Tile: Square Cotto Allende$1,171doc:40d1911c-69d6-45b4-850c-86ac6c692948#12
Fireplace Extension Tile: Square Cotto Allende$977doc:40d1911c-69d6-45b4-850c-86ac6c692948#13
Hearth Bench Cushion: Custom Upholstery for Hearth$300doc:40d1911c-69d6-45b4-850c-86ac6c692948#14
Sofa: The Breuer Sofa$5,377doc:40d1911c-69d6-45b4-850c-86ac6c692948#60
Lounge Chairs: The Hayes Chair$2,863doc:40d1911c-69d6-45b4-850c-86ac6c692948#61
Rug: Taylor Washable Wool Rug$808doc:40d1911c-69d6-45b4-850c-86ac6c692948#62
Rug Pad: RUGPADUSA 9'x12' 1/2" Thick Felt Rug Pad$140doc:40d1911c-69d6-45b4-850c-86ac6c692948#63
Coffee Table: Kyoto Coffee Table$1,559doc:40d1911c-69d6-45b4-850c-86ac6c692948#64
Upholstered Ottomans: Barrow Upholstered Pouf$790doc:40d1911c-69d6-45b4-850c-86ac6c692948#65
Sheepskin: Luxe Faux Fur Double Length Hide$121doc:40d1911c-69d6-45b4-850c-86ac6c692948#66
Low Shelving Behind Sofa: Kona Bench$957doc:40d1911c-69d6-45b4-850c-86ac6c692948#67
Dining Table: Dining Table$2,748doc:40d1911c-69d6-45b4-850c-86ac6c692948#70
Dining Chairs: RIDLEY DINING CHAIR$2,508doc:40d1911c-69d6-45b4-850c-86ac6c692948#71
Rug: Natural Kate$198doc:40d1911c-69d6-45b4-850c-86ac6c692948#72
TV: LG - 50" Class 75 Series QNED 4K UHD Smart webOS TV$1,281doc:40d1911c-69d6-45b4-850c-86ac6c692948#75
Audio: AudioPro A28$324doc:40d1911c-69d6-45b4-850c-86ac6c692948#76
Electrical
Floor Lamp: Arbor Floor Lamp$699doc:40d1911c-69d6-45b4-850c-86ac6c692948#68
Floor Lamp: Arbor Floor Lamp$699doc:40d1911c-69d6-45b4-850c-86ac6c692948#68
Ceiling Pendant Lights: Contemporary Pendant Lamp 'Alley' by AGO 'Large, Mustard$1,299doc:40d1911c-69d6-45b4-850c-86ac6c692948#73
Loft$11,906
Appliances & FF&E
Modular Ottomans: HAY Mags Ottoman$2,367doc:40d1911c-69d6-45b4-850c-86ac6c692948#136
Low Coffee Table Benches: Kona Display Table$852doc:40d1911c-69d6-45b4-850c-86ac6c692948#137
Twin Bed Platforms: LYNGÖR Foundation, Twin$386doc:40d1911c-69d6-45b4-850c-86ac6c692948#138
Mattresses: Leesa Original Mattress$1,332doc:40d1911c-69d6-45b4-850c-86ac6c692948#139
Comforter: Premium Down Alternative Comforter$200doc:40d1911c-69d6-45b4-850c-86ac6c692948#140
Sheets: European Linen Sheet Set$520doc:40d1911c-69d6-45b4-850c-86ac6c692948#141
Duvet Cover: European Linen Duvet Cover$280doc:40d1911c-69d6-45b4-850c-86ac6c692948#142
Quilts: Natural$280doc:40d1911c-69d6-45b4-850c-86ac6c692948#143
Pillow Protectors: 100% Cotton Pillow Protectors (Set of 2)$30doc:40d1911c-69d6-45b4-850c-86ac6c692948#144
Wood Stools: Colin King Acacia Wood 3-Leg Side Table$328doc:40d1911c-69d6-45b4-850c-86ac6c692948#145
Audio: AudioPro A10$107doc:40d1911c-69d6-45b4-850c-86ac6c692948#99
Turntable: Sony PS-LX310BT Belt Drive Turntable$248doc:40d1911c-69d6-45b4-850c-86ac6c692948#147
Projector: SAMSUNG 30" - 100" The Freestyle 2nd Gen with Gaming Hub Smart Portable Projector$606doc:40d1911c-69d6-45b4-850c-86ac6c692948#148
Projector Screen: Elite Screens Manual B, 80-INCH Manual Pull Down Projector Screen$111doc:40d1911c-69d6-45b4-850c-86ac6c692948#149
Interior finishes
Floors: Carpet$3,924doc:40d1911c-69d6-45b4-850c-86ac6c692948#40
Electrical
Loft Pendant: CONICK FLUSH MOUNT$150doc:40d1911c-69d6-45b4-850c-86ac6c692948#134
Floor Lamp: Mooney Floor Lamp (34")$185doc:40d1911c-69d6-45b4-850c-86ac6c692948#135
En-Suite Bathroom$1,534
Appliances & FF&E
Mirror: Leo Mirror - Round$439doc:40d1911c-69d6-45b4-850c-86ac6c692948#100
Mirror: ALTO MIRROR$187doc:40d1911c-69d6-45b4-850c-86ac6c692948#103
Towel Bar: Essential Towel Bar$51doc:40d1911c-69d6-45b4-850c-86ac6c692948#104
Hooks: Metal Hook Matte Black - Brightroom™$16doc:40d1911c-69d6-45b4-850c-86ac6c692948#106
Bath Mat: Simple Striped Terry Bath Mat$52doc:40d1911c-69d6-45b4-850c-86ac6c692948#107
Bath Towels: Organic Turkish Waffle Bath Towel Bundle$270doc:40d1911c-69d6-45b4-850c-86ac6c692948#108
Stool: Yamako Bath Chair$66doc:40d1911c-69d6-45b4-850c-86ac6c692948#109
Electrical
Vanity Sconce: COLORCREATIONStudio1 3 Light Vanity Wall Light$185doc:40d1911c-69d6-45b4-850c-86ac6c692948#101
Flush Mount Small—Toilet Room: RanorLightingDesign Wall Sconce$268doc:40d1911c-69d6-45b4-850c-86ac6c692948#102
Hallway Bathroom$1,686
Electrical
Wall Sconces: RanorLightingDesign Wall Sconce$536doc:40d1911c-69d6-45b4-850c-86ac6c692948#126
Shower Ceiling Flush Mount: RanorLightingDesign Wall Sconce$146doc:40d1911c-69d6-45b4-850c-86ac6c692948#127
Light: In Bathroom Light$167doc:40d1911c-69d6-45b4-850c-86ac6c692948#133
Appliances & FF&E
Mirror: Rounded Rectangle Metal Framed Mirror$359doc:40d1911c-69d6-45b4-850c-86ac6c692948#125
Hooks: Hewi Wall Hooks - Set of 3$68doc:40d1911c-69d6-45b4-850c-86ac6c692948#129
Bath Mat: Adela Teak Shower Mat$115doc:40d1911c-69d6-45b4-850c-86ac6c692948#130
Bath Towels: Organic Turkish Waffle Bath Towel Bundle$270doc:40d1911c-69d6-45b4-850c-86ac6c692948#108
Hardware for Cabinet: Essential Drawer Pull$25doc:40d1911c-69d6-45b4-850c-86ac6c692948#132
Primary Bedroom$6,617
Appliances & FF&E
Bed: Basi Oak King Bed Frame$947doc:40d1911c-69d6-45b4-850c-86ac6c692948#84
Mattress: Leesa Original Mattress$1,243doc:40d1911c-69d6-45b4-850c-86ac6c692948#85
Mattress Protector: Waterproof Mattress Protector$40doc:40d1911c-69d6-45b4-850c-86ac6c692948#86
Duvet: Premium Down Alternative Comforter$650doc:40d1911c-69d6-45b4-850c-86ac6c692948#87
Bedding: European Linen Sheets$450doc:40d1911c-69d6-45b4-850c-86ac6c692948#88
Bedding: European Linen Duvet Cover$160doc:40d1911c-69d6-45b4-850c-86ac6c692948#89
Bedding: European Linen Quilt Set$230doc:40d1911c-69d6-45b4-850c-86ac6c692948#90
Pillows: Quince Down Pillow$238doc:40d1911c-69d6-45b4-850c-86ac6c692948#91
Rug: Tschudi Washable Wool Rug$425doc:40d1911c-69d6-45b4-850c-86ac6c692948#93
Rug Pad: RUGPADUSA 9'x12' 1/2" Thick Felt Rug Pad$80doc:40d1911c-69d6-45b4-850c-86ac6c692948#63
Desk Chair: LISBON DINING CHAIR$679doc:40d1911c-69d6-45b4-850c-86ac6c692948#95
Desk Lamp: FADO$30doc:40d1911c-69d6-45b4-850c-86ac6c692948#96
Dresser: REPLAY CHEST$861doc:40d1911c-69d6-45b4-850c-86ac6c692948#97
Ottoman: Minze 22.05" Wide Round Pouf Ottoman$139doc:40d1911c-69d6-45b4-850c-86ac6c692948#98
Audio: AudioPro A10$107doc:40d1911c-69d6-45b4-850c-86ac6c692948#99
Electrical
Bedside Lights: Roland Table Lamp$338doc:40d1911c-69d6-45b4-850c-86ac6c692948#92
Garage$1,966
Appliances & FF&E
Washer: 4.5 Cu. Ft. Stackable SMART Front Load Washer in White with Steam and TurboWash360 Technology$875doc:40d1911c-69d6-45b4-850c-86ac6c692948#41
Dryer: 7.4 Cu. Ft. Vented SMART Stackable Gas Dryer in White with TurboSteam and Sensor Dry Technology$1,036doc:40d1911c-69d6-45b4-850c-86ac6c692948#42
Electrical
Light Fixture: Nautical White Dome$55doc:40d1911c-69d6-45b4-850c-86ac6c692948#43
Secondary Bedroom$5,941
Appliances & FF&E
Bed: Basi Oak King Bed Frame$785doc:40d1911c-69d6-45b4-850c-86ac6c692948#84
Mattress: Leesa Original Mattress$1,243doc:40d1911c-69d6-45b4-850c-86ac6c692948#85
Bedding: European Linen Sheets$450doc:40d1911c-69d6-45b4-850c-86ac6c692948#88
Bedding: European Linen Duvet Cover$160doc:40d1911c-69d6-45b4-850c-86ac6c692948#89
Bedding: European Linen Quilt Set$230doc:40d1911c-69d6-45b4-850c-86ac6c692948#90
Matttress Protector: Waterproof Mattress Protector$40doc:40d1911c-69d6-45b4-850c-86ac6c692948#115
Duvet: Premium Down Alternative Comforter$150doc:40d1911c-69d6-45b4-850c-86ac6c692948#87
Pillows: Quince Down Pillow$238doc:40d1911c-69d6-45b4-850c-86ac6c692948#91
Nightstands: Gavin 2-Drawer Oak Wood Left And Right Nightstands Set Of 2$827doc:40d1911c-69d6-45b4-850c-86ac6c692948#118
Rug: Hart Jute Rug$468doc:40d1911c-69d6-45b4-850c-86ac6c692948#120
Rug Pad: RUGPADUSA 9'x12' 1/2" Thick Felt Rug Pad$100doc:40d1911c-69d6-45b4-850c-86ac6c692948#63
Bench: Invitation 48" Bench$662doc:40d1911c-69d6-45b4-850c-86ac6c692948#122
Mirror: 24x48 Mirror$105doc:40d1911c-69d6-45b4-850c-86ac6c692948#123
Audio: AudioPro A10$107doc:40d1911c-69d6-45b4-850c-86ac6c692948#99
Electrical
Bedside Lights: Esse Table Lamp in Teal from Plato Design$376doc:40d1911c-69d6-45b4-850c-86ac6c692948#119
Foyer$1,794
Appliances & FF&E
Entryway Console Table: Wood Console Sofa Table Black Oak$146doc:40d1911c-69d6-45b4-850c-86ac6c692948#78
Mirror: Bruno Oak Mirror$354doc:40d1911c-69d6-45b4-850c-86ac6c692948#79
Outdoor Bench: Hot Mesh Bench$307doc:40d1911c-69d6-45b4-850c-86ac6c692948#80
Shoe Mat: Black Large Shoe & Boot Tray$69doc:40d1911c-69d6-45b4-850c-86ac6c692948#81
Stool$50doc:40d1911c-69d6-45b4-850c-86ac6c692948#82
Electrical
Hallway Wall Sconces: Orb Slim Surface Mount$598doc:40d1911c-69d6-45b4-850c-86ac6c692948#77
Outdoor Light: Carrier Portable Lamp$270doc:40d1911c-69d6-45b4-850c-86ac6c692948#83
Kids Room$824
Appliances & FF&E
Shelf: Unfnshd$146doc:40d1911c-69d6-45b4-850c-86ac6c692948#51
Nap Cot: Sportsmans Guide$70doc:40d1911c-69d6-45b4-850c-86ac6c692948#52
Cot Quilt$140doc:40d1911c-69d6-45b4-850c-86ac6c692948#53
Rug: Australian Single Sheepskin Rug$80doc:40d1911c-69d6-45b4-850c-86ac6c692948#54
Shelves: Modern Shelf$105doc:40d1911c-69d6-45b4-850c-86ac6c692948#55
Custom Pennant: Custom Sea Ranch Pennant$45doc:40d1911c-69d6-45b4-850c-86ac6c692948#56
Sheets: Olive Green$41doc:40d1911c-69d6-45b4-850c-86ac6c692948#58
Mattress Protector: White$18doc:40d1911c-69d6-45b4-850c-86ac6c692948#59
Electrical
Pendant Light: Vintage Enameled Field Tent Cord Pendants$179doc:40d1911c-69d6-45b4-850c-86ac6c692948#57
15-year land improvements$78,443
Property-wide$15,444
Site & land improvements
Driveway and walkways$5,148Archetype
Landscaping (depreciable)$5,148Archetype
Fencing$5,148Archetype
Exterior$63,000
Site & land improvements
Projected Deck & Landscape Costs$63,000doc:40d1911c-69d6-45b4-850c-86ac6c692948#900
27.5-year residential shell$266,689
Property-wide$228,624
Structure & envelope
Demo$10,000doc:67d806c3-d24a-4340-9863-4d893152ebfd#4
Fireplace Parts & Install$4,901doc:67d806c3-d24a-4340-9863-4d893152ebfd#5
Old Fireplace Patch Repair$800doc:67d806c3-d24a-4340-9863-4d893152ebfd#6
Framing, Walls, Shower Pans, Lattice Repair, Countertop, Kitchen Appliances$6,800doc:67d806c3-d24a-4340-9863-4d893152ebfd#14
Trash$2,073doc:67d806c3-d24a-4340-9863-4d893152ebfd#18
Window Cleaning$170doc:67d806c3-d24a-4340-9863-4d893152ebfd#20
Dump Run for Install$800doc:67d806c3-d24a-4340-9863-4d893152ebfd#21
Termite / Wood Burrowing Treatment$2,800doc:67d806c3-d24a-4340-9863-4d893152ebfd#29
Labor Termite Wood Replacement$2,700doc:67d806c3-d24a-4340-9863-4d893152ebfd#30
Extra Tiling to Extend Fireplace$1,800doc:67d806c3-d24a-4340-9863-4d893152ebfd#31
Residential rental building$129,339Archetype
Interior finishes
Wood Floors & Underlayment$7,242doc:67d806c3-d24a-4340-9863-4d893152ebfd#0
Door Hardware$649doc:67d806c3-d24a-4340-9863-4d893152ebfd#1
Tiling$19,250doc:67d806c3-d24a-4340-9863-4d893152ebfd#8
Tiling/Blue Bath Shower Wall Fix$1,000doc:67d806c3-d24a-4340-9863-4d893152ebfd#9
Painting$11,500doc:67d806c3-d24a-4340-9863-4d893152ebfd#11
Labor Wall Smoothening$2,500doc:67d806c3-d24a-4340-9863-4d893152ebfd#22
Plumbing
Plumbing$10,000doc:67d806c3-d24a-4340-9863-4d893152ebfd#7
Plumbing (Unclog main line)$330doc:67d806c3-d24a-4340-9863-4d893152ebfd#23
Septic Service (Pumping Mainline)$1,100doc:67d806c3-d24a-4340-9863-4d893152ebfd#24
Water Main Replacement$680doc:67d806c3-d24a-4340-9863-4d893152ebfd#33
Electrical
Electrical$8,500doc:67d806c3-d24a-4340-9863-4d893152ebfd#10
Soft costs
Project Decor Install Support / Labor$1,815doc:67d806c3-d24a-4340-9863-4d893152ebfd#27
Hot Water Install Labor$1,875doc:67d806c3-d24a-4340-9863-4d893152ebfd#28
Kitchen$7,305
Structure & envelope
Kitchen Joist Repair$3,500doc:67d806c3-d24a-4340-9863-4d893152ebfd#15
Interior finishes
Kitchen Countertop + Backsplash: Durasein Countertop$1,532doc:40d1911c-69d6-45b4-850c-86ac6c692948#10
Plumbing
Sink: Kraus KHU100-30 Kitchen Sink, 30 Inch, Stainless Steel$315doc:40d1911c-69d6-45b4-850c-86ac6c692948#8
Faucet: Hansgrohe Talis Faucet$408doc:40d1911c-69d6-45b4-850c-86ac6c692948#9
Kitchen Peninsula Pipe Relocation$800doc:67d806c3-d24a-4340-9863-4d893152ebfd#16
Soft costs
Kitchen Countertop Seam Welder$750doc:67d806c3-d24a-4340-9863-4d893152ebfd#17
Living / Dining$397
Structure & envelope
Fireplace Tools: Oak Handle Fireplace Tool Set$397doc:40d1911c-69d6-45b4-850c-86ac6c692948#74
En-Suite Bathroom$8,678
Plumbing
Sink: Claire 29-3/4" Rectangular Ceramic Wall Mounted Bathroom Sink$342doc:40d1911c-69d6-45b4-850c-86ac6c692948#19
Sink faucet: Vassor Single-Hole Bathroom Faucet$453doc:40d1911c-69d6-45b4-850c-86ac6c692948#20
Sink Drain: Pop-Down Bathroom Sink Drain$129doc:40d1911c-69d6-45b4-850c-86ac6c692948#21
P-Trap: 1-1/4" x 1-1/4" Contemporary Bottle Trap With Box Flange$173doc:40d1911c-69d6-45b4-850c-86ac6c692948#22
Shower Fixtures: Delta Modern 1-Spray Raincan Wall Mount Fixed and Handheld Shower Head$792doc:40d1911c-69d6-45b4-850c-86ac6c692948#23
Bathtub: Ursula 59'' x 28'' Freestanding Soaking Acrylic Bathtub$1,034doc:40d1911c-69d6-45b4-850c-86ac6c692948#24
Bathtub Faucet: Signature Hardware Sebastian Wall Mounted Tub Filler Faucet with 2" Wall Couplers and Lever Handles$811doc:40d1911c-69d6-45b4-850c-86ac6c692948#25
Toilet: Swiss Madison Well Made Forever SM-1T254 St. Tropez One Piece Toilet$350doc:40d1911c-69d6-45b4-850c-86ac6c692948#26
Bath Drains (both Bathrooms)$146doc:40d1911c-69d6-45b4-850c-86ac6c692948#27
Delta Trap Slip Joint$308doc:40d1911c-69d6-45b4-850c-86ac6c692948#29
Kohler Water Supply Valve$109doc:40d1911c-69d6-45b4-850c-86ac6c692948#30
Toilet Paper Holder: Essential Toilet Paper Holder$19doc:40d1911c-69d6-45b4-850c-86ac6c692948#105
Interior finishes
Shower Tile: Square Limestone$2,751doc:40d1911c-69d6-45b4-850c-86ac6c692948#18
Electrical
Skylight$289doc:40d1911c-69d6-45b4-850c-86ac6c692948#17
Skylight$868doc:40d1911c-69d6-45b4-850c-86ac6c692948#17
Exhaust Fan$104doc:40d1911c-69d6-45b4-850c-86ac6c692948#28
Hallway Bathroom$7,523
Plumbing
Shower Fixtures: Delta Modern 1-Spray Raincan Wall Mount Fixed and Handheld Shower Head$658doc:40d1911c-69d6-45b4-850c-86ac6c692948#23
Sink: Carre 35-5/8" Rectangular Ceramic Wall Mounted Bathroom Sink with Overflow and Single Faucet Hole$342doc:40d1911c-69d6-45b4-850c-86ac6c692948#33
Sink faucet: Vassor Single-Hole Bathroom Faucet$453doc:40d1911c-69d6-45b4-850c-86ac6c692948#20
Sink Drain: Pop-Down Bathroom Sink Drain$129doc:40d1911c-69d6-45b4-850c-86ac6c692948#21
P-Trap: 1-1/4" x 1-1/4" Contemporary Bottle Trap With Box Flange$173doc:40d1911c-69d6-45b4-850c-86ac6c692948#22
Toilet: Swiss Madison Well Made Forever SM-1T254 St. Tropez One Piece Toilet$350doc:40d1911c-69d6-45b4-850c-86ac6c692948#26
Myraid Bathroom Materials$1,672doc:40d1911c-69d6-45b4-850c-86ac6c692948#39
Toilet Paper Holder: Hewi Toilet Paper Holder$120doc:40d1911c-69d6-45b4-850c-86ac6c692948#128
Interior finishes
Shower + Floor Tile: Matte Blue 4x4 Tile$3,522doc:40d1911c-69d6-45b4-850c-86ac6c692948#31
Electrical
Exhaust Fan$104doc:40d1911c-69d6-45b4-850c-86ac6c692948#28
Wood Floors$7,773
Interior finishes
Floors: White Oak Flooring$5,723doc:40d1911c-69d6-45b4-850c-86ac6c692948#0
Flooring Underlayment: Nature All-In-One Underlayment$1,519doc:40d1911c-69d6-45b4-850c-86ac6c692948#1
Floor Transitions: White Oak Flooring$531doc:40d1911c-69d6-45b4-850c-86ac6c692948#2
Garage$4,400
Plumbing
Tankless Water Heater: NCB-240/130H - 199,000 BTU DHW / 130,000 BTU HTG Condensing Combi-Boiler and parts$2,300doc:40d1911c-69d6-45b4-850c-86ac6c692948#44
Structure & envelope
Wood Beams for Termite Damage$2,100doc:40d1911c-69d6-45b4-850c-86ac6c692948#45
Foyer$1,340
Interior finishes
Floor Tile: 8x8 Cement Tile$1,340doc:40d1911c-69d6-45b4-850c-86ac6c692948#15
Door Hardware$649
Interior finishes
Interior Door Knobs: Emtek Orb Brass Modern Privacy Knobset$649doc:40d1911c-69d6-45b4-850c-86ac6c692948#3
State conformity

How the state diverges

Federal bonus depreciation isn't always allowed at the state level. Where a state decouples, the federal bonus is added back and the asset is recovered on the state's own schedule — producing a separate state deduction stream and a basis that diverges from federal through sale.

California (CA)Preliminary · pending verification

California does not conform to §168(k). Federal bonus is added back on FTB 3885A and the asset recovered under regular MACRS over its class life. Federal bonus added back, depreciation recomputed under regular MACRS · CA FTB 3885A.

State adjustment · the figures you transcribe onto the return
Tax yearAdd-backSubtraction
Year 1$134,034—
Year 2—$40,200
Year 3—$25,461
Year 4—$16,486
Year 5—$16,124
Year 6—$9,363

Year-one add-back of $134,034 is recovered over the asset lives; the federal bonus and the state schedule recover the same basis, so the adjustments net to zero across the full horizon.

State depreciation schedule
Tax yearState deductionCumulative
Year 1$46,392$46,392
Year 2$76,697$123,089
Year 3$52,133$175,222
Year 4$37,175$212,397
Year 5$36,571$248,968
Year 6$25,303$274,271
Total over 28 years$531,221
Dual basis · federal vs CA remaining basis
Tax yearFederal basisCA basisDivergence
Year 1$350,791$484,825$134,034
Year 5$246,486$282,248$35,763
Year 10$184,347$199,634$15,287

CA carries more basis forward — federal front-loads depreciation via bonus, so a sale before full recovery shows a larger federal gain than CA.

Section 04

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.

SourceWhat it verifiedHowStatus
Closing statementPurchase price & cost basisClient-uploaded; reconciled to settlement line itemsVerified
Contractor invoicesComponent costs & quantitiesClient-uploaded receipts, reconciled to scopeVerified
Client photographs (40)Existence & condition of reclassified assetsEngineer reviewVerified
IRS authoritiesClassification & recovery periodsCross-referenced per componentVerified
CPA-provided factspurchase price, capital improvements cents, land allocation %, acquisition date, placed-in-service date, unit count, +8 moreEntered by your CPA on your behalf and logged to the audit trailVerified
Remodel, before and after

The remodel scope, documented. These photos support the disposition and replacement detailed in Section 02.

Vertical shiplap wall paneling

Remodel basis · $9K
Before
After
Disposed
$9K
Replacement
$9K
AI vision · CPA-accepted

Tile wall surround and shower base

Remodel basis · $23K
Before
After
Disposed
$23K
Replacement
$23K
AI vision · CPA-accepted

Tile shower enclosure with glass partition

Remodel basis · $23K
Before
After
Disposed
$23K
Replacement
$23K
AI vision · CPA-accepted

Exterior deck with composite/wood decking

Remodel basis · $14K
Before
After
Disposed
$14K
Replacement
$14K
AI vision · CPA-accepted

Kitchen cabinetry and countertop

Remodel basis · $37K
Before
After
Disposed
$37K
Replacement
$37K
AI vision · CPA-accepted

Loft

Remodel basis · $9K
Before
After
Disposed
$9K
Replacement
$9K

Living Room

Before
After
Section 05

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.

Key parameters & assumptions

The figures above are fixed by these study-specific inputs: the bonus rate is set by the placed-in-service year, and the disposition is a taxpayer election. They carry through the entire study.

Tax year of filing2024
MACRS recovery periods, conventions, and the bonus rate are applied as in effect for this filing year.
First-year bonus rate60%
IRC §168(k) first-year bonus depreciation. The rate is fixed by the placed-in-service date (Jun 15, 2024) and steps down by year, so it is specific to this property.
Partial asset dispositionElected · §1.168(i)-8
Remaining basis of the components removed in the remodel is written off this year. Requires the original component basis and the removal/placed-in-service dates. It is a per-component election, not automatic.
Land allocation$376,875
Land is non-depreciable and excluded from the reclassified basis.
MACRS conventionsMid-month / half-year
The 27.5-year shell uses the mid-month convention; 5- and 15-year property uses the half-year (or mid-quarter) convention per IRS Pub. 946.
Authorities
AuthorityHow it applies to this study
STATUTE IRC §167IRC §167
STATUTE IRC §168IRC §168
REV_PROC Rev. Proc. 87-56Rev. Proc. 87-56, 1987-2 C.B. 674
ATG Cost Seg ATGIRS Cost Segregation Audit Technique Guide (revised 2017)
REG Treas. Reg. §1.167(a)-1Treas. Reg. §1.167(a)-1
CASE AmeriSouthAmeriSouth XXXII Ltd. v. Commissioner, T.C. Memo 2012-67
REV_RUL Rev. Rul. 2003-81Rev. Rul. 2003-81, 2003-2 C.B. 126
CASE WhitecoWhiteco Industries Inc. v. Commissioner, 65 T.C. 664 (1975)
Section 06

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.

01

Source ingestion

Source facts and citations verified at intake.

2 of 2 checks passed
02

Component classification

Components mapped to MACRS class lives per Rev. Proc. 87-56 + IRS ATG.

0 of 1 passed. 1 reclassified component(s) present: Whiteco six-factor analysis required for audit defense
03

Reconciliation

Allocation sum reconciled to depreciable basis within tolerance.

1 of 1 check passed
04

Compliance check

Bonus eligibility, anti-churning, and completeness validated.

2 of 3 passed. 5 conflict(s) escalated: land_allocation_pct, acquisition_date, rental_activity_non_passive, first_booking_date, replacement_pis_date
Engineered review pass
All 4 stages passed. Cleared for delivery.
Run ID a464d2c0f6733c16
Hash a464d2c0…3c16
Sealed 2026-06-01T16:00:45.053262+00:00
AI engineering review

An AI engineer paired with an IRS audit agent reviews and verifies every study so the calculations are defensible and traceable to tax-law standards.

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.

About this review. Component allocations are cross-validated against IRS authorities, assessor records, and the client's source documents during the preparation workflow. Bola's Tax Co. retains sole professional responsibility for the tax positions reported on the return, reviews the underlying support, and signs the return as the paid preparer. The software facilitates substantiation and calculation; it does not replace the firm's professional judgment or filing responsibility.