# Abode Cost Segregation — Full Reference > AI-powered cost segregation studies for short-term rental (STR) investors. IRS-compliant, CPA-reviewed, delivered in minutes. $481 flat fee per property. Abode Cost Segregation is a product of Everden LLC. We provide automated cost segregation studies — an IRS-approved tax strategy that accelerates depreciation on rental properties — specifically designed for Airbnb, VRBO, and other short-term rental property owners. --- ## What Is Cost Segregation? Cost segregation is an IRS-approved tax strategy that accelerates depreciation on a rental property. By default, the IRS requires you to depreciate a residential rental property over 27.5 years. Cost segregation identifies individual components of your property — flooring, appliances, fixtures, landscaping, cabinetry, specialty electrical, HVAC components — that legally qualify for much faster depreciation over 5, 7, or 15 years instead. Combined with bonus depreciation (100% for property acquired after January 19, 2025 under the One Big Beautiful Bill Act; 20% for 2026 acquisitions), investors often capture a significant portion of those accelerated deductions in the very first year. ### Asset Classification A cost segregation study reclassifies property components into four IRS categories: - **5-year property:** Carpeting, appliances, decorative lighting, window treatments, furniture, certain electrical outlets - **7-year property:** Office furniture, certain fixtures, specialized equipment - **15-year property:** Landscaping, driveways, parking areas, fencing, sidewalks, outdoor lighting - **27.5-year property:** Structural components — walls, roof, foundation, embedded HVAC ductwork, core plumbing For a typical residential investment property, a well-executed study reclassifies 25-35% of the building's depreciable basis into shorter-lived categories. --- ## Why STR Investors Specifically? Short-term rental property owners benefit uniquely from cost segregation for two reasons: 1. **The STR Exception:** If you materially participate in your STR (typically 100+ hours/year and more hours than anyone else), the property is not treated as passive activity under IRS rules (Treas. Reg. 1.469-1T(e)(3)(ii)(A)). Losses from accelerated depreciation can potentially offset ordinary income — not just deferred rental income. 2. **Property Mix:** STRs typically have higher ratios of personal property (furniture, appliances, decor, linens, electronics) that naturally qualify for accelerated depreciation compared to bare long-term rental units. --- ## Who Qualifies? - Airbnb, VRBO, and other short-term rental property owners - Properties valued at $100,000+ (most compelling at $150,000+) - Properties you own (not lease) and rent out as STR - Newly purchased properties or properties owned for several years (look-back studies available) - Renovated properties where capital improvements were made - Investors in meaningful tax brackets (24%+) We do not currently service: large commercial properties, apartment complexes, or primary residences. --- ## How Abode Works 1. **Enter your property address** — AI automatically looks up property details: square footage, year built, assessed value breakdown, property type 2. **Answer a few questions** — Purchase price, year purchased, estimated tax bracket 3. **See your instant estimate** — Estimated first-year deduction range and potential tax savings appear immediately 4. **Create your free account** — Access the full breakdown and order your official study 5. **Complete your purchase** — $481 flat fee, no hidden costs 6. **Complete the study wizard** — Answer additional property questions (approximately 8 minutes). AI engine generates your full IRS-compliant study instantly 7. **Download your report** — CPA-ready PDF and CSV export available immediately --- ## Pricing **$481 flat fee per property. No subscription.** Included: - Complete IRS-compliant cost segregation study - Component-level breakdown (5-year, 7-year, 15-year, and 27.5-year asset classes) - Bonus depreciation calculations for current tax year - Look-back depreciation analysis (if applicable) - Form 3115 catch-up calculations for prior-year properties - State bonus depreciation conformity warnings - CPA-ready PDF report formatted for direct use on tax return - CSV export for tax software import - Email support if your CPA has follow-up questions **90-day money-back guarantee.** For comparison: traditional cost segregation firms charge $3,000-$8,000+ per study, require an on-site engineer visit, and take 4-8 weeks to deliver. --- ## What Your Report Includes - Property overview and analysis summary - Full asset classification table with each component listed - Estimated value and depreciation schedule for each asset class - Bonus depreciation amounts by class for the current tax year - Total first-year accelerated depreciation figure - Look-back catch-up deduction (for properties owned in prior years) - State conformity warnings - Supporting documentation for CPA use on tax return - Maps to IRS Form 4562 (Depreciation and Amortization) - Form 3115 supporting calculations under Section 481(a) for catch-up depreciation --- ## Bonus Depreciation Rules (Current as of 2026) The One Big Beautiful Bill Act (OBBBA), signed July 4, 2025, reinstated 100% bonus depreciation: | Acquisition Period | Bonus Rate | |---|---| | After January 19, 2025 | 100% (permanent under OBBBA) | | 2026 acquisitions | 20% | | 2025 (pre-Jan 19) | 40% | | 2024 | 60% | | 2023 | 80% | | 2022 and earlier | 100% was available | ### State Conformity Most states conform to federal bonus depreciation rules. The following do not: - **Non-conforming:** California, New York, New Jersey, Pennsylvania, Maryland, Massachusetts, Arkansas - **Partially conforming:** Connecticut, Illinois All Abode studies include state-specific conformity warnings. --- ## IRS Compliance & Quality - Methodology follows IRS Revenue Procedure 87-56 and the IRS Cost Segregation Audit Technique Guide (ATG) - CPA-audited engine graded A-/A against professional study standards - MACRS-compliant depreciation schedules - Asset classifications map directly to IRS forms - Studies prepared to withstand IRS scrutiny --- ## Frequently Asked Questions **Is cost segregation legal?** Yes, completely. Cost segregation is 100% legal and IRS-approved. It has been used by commercial real estate investors for decades. The IRS publishes specific guidance on how studies should be conducted. **Can I do this for a property I bought years ago?** Yes. A "look-back" study covers years you've already owned the property. The IRS allows you to catch up on all missed accelerated depreciation in a single year via Form 3115 (Change in Accounting Method), filed under automatic consent (Rev Proc 2015-13) — no IRS approval needed and no user fee. **Do I need a CPA?** Yes. Abode provides the cost segregation study — the professional documentation. You need a CPA or enrolled agent to claim the deductions on your tax return. Abode does not file taxes. **How long does the study take?** Under 10 minutes. The quiz takes about 2 minutes for a free estimate, then after purchase, the study wizard takes approximately 8 minutes to generate your full CPA-ready report. **What does my CPA need from the study?** A PDF report and optional CSV export. The study maps directly to IRS Form 4562. For catch-up depreciation, it includes Form 3115 supporting calculations. The CSV can be imported into most professional tax software. **What if I have multiple properties?** Each property requires its own study at $481. Contact us for volume options. **What's the refund policy?** 90-day money-back guarantee via My Account page or support@abodecostseg.com. **How does Abode compare to traditional firms?** Traditional firms charge $3,000-$8,000+, require on-site engineer visits, and take 4-8 weeks. Abode delivers comparable quality studies in under 10 minutes at $481 by combining AI with specialist review. --- ## Educational Content Library Abode publishes 220+ free educational articles at https://www.abodecostseg.com/learn covering: - Cost segregation fundamentals and how-to guides - Bonus depreciation rules and OBBBA analysis - State-by-state STR tax guides for all 50 states - City and market-specific STR guides (Gatlinburg, Palm Springs, Scottsdale, etc.) - IRS compliance (Form 3115, Form 4562, ATG methodology) - Property-type specific guides (condos, cabins, beach houses, etc.) - Tax strategy for STR investors --- ## Contact - **Website:** https://www.abodecostseg.com - **Email:** support@abodecostseg.com - **Free Estimate:** https://www.abodecostseg.com/quiz - **Response time:** 1-2 business days --- ## Disclaimer Abode provides cost segregation studies — professional documentation of an IRS-approved tax strategy. Abode does not provide tax advice, legal advice, investment advice, or financial planning services. All savings estimates are illustrative and based on general averages. Actual results depend on your specific property, tax situation, participation level, and your CPA's implementation. Always consult a qualified CPA or tax professional before implementing any tax strategy.