5-year reclassified property
—FREE CALCULATOR · TAX YEAR 2026
Short-term rental
tax savings calculator.
See how rental income, cost segregation and bonus depreciation could change your federal income tax. Compare scenarios, understand the loss limits, and keep your STR hours and evidence ready for review.
Educational estimates only. This tool does not establish tax eligibility or replace a CPA, a cost segregation study or a tax return.
2026 FEDERAL ESTIMATE
Potential first-year
tax savings
- Depreciation with cost segregation
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- Depreciation without a study
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- Net rental income before depreciation
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- Rental loss before limitations
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- Loss modeled against other income
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- Loss not deducted this year
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- 2026 excess business loss limit
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- Federal tax without this rental
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- Federal tax with this rental
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- Additional tax benefit from cost segregation
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Furniture depreciation is included in both study and no-study scenarios. Displayed property amounts reflect your ownership share.
Review material participation ↓FOLLOW THE BASIS
Where the depreciation comes from
15-year reclassified property
—Separate eligible furniture
—Remaining building basis
—Amounts are your share. The default 20% / 10% split is an editable example, not a claim about typical cost segregation results.
THE WORK BEHIND THE NUMBERS
Review your material participation.
Keep records of the work.
Review guest stays
Average customer use of seven days or less is one exception to the passive-activity rental definition. Review other facts and applicable rules with your advisor.
Account for who worked
For one test, your participation must exceed 100 hours and be at least as much as any other individual’s. Working with a cleaner, co-host or manager can affect that comparison.
Document actual activity
Record the property, task, date and actual time spent. Keep helpful receipts, photos and notes with the activity rather than reconstructing a year from memory.
See PropHours logging tools →These prompts do not cover all material participation tests or determine qualification. IRS Publication 925 explains the rules.
Look beyond the first-year number.
A deduction may be deferred
The non-passive scenario caps the modeled business loss at $256,000 for single filers or $512,000 for joint filers in 2026. It assumes no other businesses and sufficient basis and amount at risk. Passive treatment can impose a different limitation.
Depreciation can affect later tax
The model includes — of first-year depreciation on assumed personal property and — on the remaining classes. These amounts are not a sale-tax estimate.
Recapture depends on asset classification, gain and later depreciation. A sale price and future tax circumstances are required to estimate it; accelerated deductions are not necessarily permanent savings.
State results may differ
State bonus-depreciation rules can differ from federal rules. This page does not model state income tax or claim that the federal estimate is your total tax benefit.
How the STR tax savings estimate is calculated
The model removes land, allocates the selected building percentages to 5- and 15-year pools, and adds eligible furniture separately. It applies your bonus rate, then half-year MACRS rates of 20% and 5% to the respective non-bonus balances. Remaining building depreciation uses the selected 27.5- or 39-year period and the mid-month factor.
Actual-period revenue minus operating expenses and interest gives pre-depreciation rental income. Ownership is applied to income, expenses and depreciation. If a loss is assumed non-passive, the calculator applies the 2026 excess business loss cap. In the passive scenario, it does not offset other income.
The calculator subtracts the basic standard deduction and calculates ordinary income tax across the 2026 brackets. It compares tax with the rental to tax without it, then separately compares study and no-study scenarios. A negative savings figure means additional tax in the modeled scenario.
Limitations to discuss with your CPA
The model omits capital gains rates, tax credits, itemized deductions, QBI, AMT, NIIT, self-employment tax, basis and at-risk calculations, personal-use limits, passive income, special rental allowances, prior losses, other businesses, mid-quarter rules, alternative depreciation systems and actual study fees. Losses not deducted here may have different carryforward treatment; this is not a carryforward schedule.
Sources: 2026 IRS tax brackets and standard deductions · Revenue Procedure 2025-32 · Depreciation guidance · Asset sales and recapture. Rules reviewed September 20, 2026.
SHORT-TERM RENTAL TAX QUESTIONS
STR tax savings calculator FAQ
What is the STR tax loophole?
It is an informal name for a strategy involving rental classification, participation and deductions. Owning an Airbnb does not automatically make losses usable against wages. Eligibility and other limits need individual review.
Why use tax brackets instead of a flat percentage?
A deduction can move taxable income through several brackets. Calculating tax before and after the modeled rental result reflects those changes rather than applying the highest rate to every dollar.
Is 100% bonus depreciation available for a short-term rental?
Qualifying assets acquired and placed in service after January 19, 2025 may be eligible. Land and the building itself are not automatically eligible. Confirm dates, asset classifications and elections before selecting a rate.
Does a property manager prevent material participation?
Not necessarily. The applicable test and everyone’s participation matter. Keep accurate records of your work and discuss the relevant comparison with your advisor.
Can I estimate rental depreciation without household income?
Use our cost segregation calculator for a simpler depreciation comparison with a selected marginal tax rate. This STR calculator adds income brackets, rental operations and a loss-limit scenario.
Are my calculator inputs saved?
No calculator inputs are submitted or stored by this page. Calculations run in your browser, and Reset restores the example scenario.
STR HOURS · MATERIAL PARTICIPATION · EVIDENCE
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into an organized record.
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