2212 Willow Bend Ave # B

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 2212 Willow Bend Ave # B, a condominium unit placed in service Jan 1, 2021, 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 $537,200 ($252,800 land excluded from $790,000 total). The residual structural shell is classified as 39-year nonresidential real property because the property is operated as transient lodging. Ownership is the unit plus a 65% undivided interest in the regime's common elements, including the land. The land excluded above is the documented land allocation adopted for this unit, which reflects that common-element interest. Condominium ownership does not reduce the land allocation to zero.

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.

Component allocation

$177,276 of short-life property, accelerated out of the $537,200 depreciable basis. The rollup below organizes the full basis by recovery period, then down to each component and its verified source.

Every dollar of the $537,200 allocated basis is assigned to a measured room or the site. Expand a row for the components behind it and whether the dollar was pinned to that room or is its area share of a whole-house system.

Recovery bucket → component line item.

With the $177,276of short-life property reclassified from the building basis above, that's $215,571 of accelerated 5- and 15-year property placed in service. They are carried as separate pools by asset class (the reclassified building components and the §1245 furnishings each depreciate on their own schedule), all placed in service together with the property.

What each state does with this deduction

Each state this study touches, classified by how it treats the federal year-one deduction.

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.

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.

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.