Portfolio value
$3.42M
↑ $214K this year
Tax saved · YTD
$163K
cost-seg + 100% bonus
Annual cash flow
$11.8K/mo
net, after debt service
Participation · at risk
1 of 3
Saguaro Casita short on hours
The waterline · this year
What surfaced as deduction
Cost-segregated + 100% bonus, pulled above the waterline
Across two acquisitions placed in service this year, $441K of basis was reclassified into short-life property and deducted in year one under restored 100% bonus depreciation — offsetting active income because both properties qualify as non-passive short-term rentals with material participation.
Portfolio mix
Net cash flow · trailing 12
The fleet
This workstation organizes your properties, entities, cost allocation, and documentation. It is not a law or accounting firm and does not provide tax or legal advice or determine tax positions. The short-term-rental strategy shown depends on facts specific to you — average guest stay, material participation, personal-use limits, and a defensible cost-segregation study — and must be reviewed and implemented by your licensed CPA and/or tax attorney. 100% bonus depreciation under the One Big Beautiful Bill Act applies to qualifying property acquired and placed in service after Jan 19, 2025 (IRS Notice 2026-11). All figures are illustrative.
The fleet
5 properties · 3 short-term · 1 long-term · 1 mid-term
| Property | Type | Market | Value | Equity | Net / mo | Held in | Cost-seg |
|---|
Per-property detail
STR loophole engine
Convert a qualifying short-term rental's depreciation into a year-one deduction against active income — and see, live, whether it actually qualifies
The property
$
Does it qualify?
d
d
Your tax profile
$
Basis decomposition · $720,000 property
surfaced
39-yr building
land
Surfaced year-one (100% bonus)$194K
Reclassified to short-life property$194K
+ first-year building depreciation$10K
Total year-one deduction$204K
Tax saved at marginal rate$72K
Submerged · remaining building basis$382K
Active income offset
The bridge decomposes the offset — movement, not parts of a whole. Suspended scenarios show no bridge: passive losses don’t move W-2 income.
Qualification tests
Depreciation timeline
Why year one is the whole game — bonus front-loads the deduction
Recapture & the catch
Show the math · statute & gates
Formula (E1 · calcTax)
Gates. Participation counts only from the contemporaneous log (§1.469-5T(f)(4)). “Defensible” requires the engineering-based cost-seg study on file (HCA, 109 T.C. 21) — at production the reclass % comes from the study, not the slider. Modeled range — the CPA signs qualification and the method.
land = P·l reclass = P·s B = P − land − reclass
year-1 = reclass + B/39 (mid-month convention omitted — flagged simplification)
qualifies = (avg stay ≤ 7) ∧ (material participation) ∧ (personal use ≤ 14)
saved = qualifies ? year-1 · r : suspended recapture ≈ up to reclass · r
Basis. §469 passive default; Reg. §1.469-1T(e)(3)(ii)(A) removes a ≤7-day-average-stay activity from “rental” (the ≤30-day + significant-services path (B) is not modeled — it surfaces as the alternative). Material participation per Reg. §1.469-5T(a) tests 1 & 3; spouse hours count (§469(h)(5)); investor-type work excluded (§1.469-5T(f)(2)(ii)). Personal use over the greater of 14 days / 10% triggers §280A(d). 100% bonus under §168(k) (OBBBA) for property acquired and placed in service after 2025-01-19 (IRS Notice 2026-11). Recapture: §1245 ordinary; unrecaptured §1250 capped 25%; §1031 defers.
Gates. Participation counts only from the contemporaneous log (§1.469-5T(f)(4)). “Defensible” requires the engineering-based cost-seg study on file (HCA, 109 T.C. 21) — at production the reclass % comes from the study, not the slider. Modeled range — the CPA signs qualification and the method.
Cost segregation studio
Reclassify a property's components into shorter recovery periods — the engine behind the deduction
Smoky Ridge Cabin · $640K
evidence · locked to study| Component | Class | Basis | % of total |
|---|
An engineering-based study moves qualifying components from 27.5/39-year real property into 5-, 7-, and 15-year property — which then qualifies for 100% bonus. Land is never depreciable. A study is not legally required to claim bonus, but it is what makes the allocation defensible on exam. Provenance: these percentages are read from the study object in the vault — the STR desk’s slider models a range; this table is the locked figure.
Acceleration & recapture
$173K
deducted in year one vs. ~$16K straight-line
§1245 recapture on sale (ordinary)up to 37%
§1250 real-property recapturecapped at 25%
Deferral path1031 exchange
NPV twin — accelerate now, recapture at modeled sale—
Recapture is the trade-off for acceleration — front-loaded deductions are partially repaid at sale. Holding 5+ years and/or a 1031 exchange preserves most of the time-value benefit.
Material participation tracker
The single most-audited requirement of the strategy — logged contemporaneously, the way the IRS expects
Saguaro Casita · 2026
at riskTest A · 100 hours & more than anyone else0%
Test B · 500 hours0%
Log time on this property provenance · in-app log
Reviewing financial statements does not count. Guest communications, coordinating maintenance, overseeing turns, and management decisions do. Keep the log contemporaneous — reconstructed-after-the-fact logs are where audits are lost.
Activity log
0 hrs loggedPortfolio standing
Structure map
Each property anchored in its own LLC, isolated from the others — the lawsuit that hits one can't reach the rest
Ownership
Mgmt fee
Loan
Red ring = operating / liability-exposed rental · green = holding / protected
Asset isolation
Each rental sits in a single-purpose LLC. A slip-and-fall claim at Smoky Ridge is contained to Smoky Ridge — it never reaches Cliffside, the duplex, or the family's personal assets.
Holding tier
Beacon Harbor Holdings owns the property LLCs; the family trust owns the holding company. Equity and protection sit above the operating risk, not beside it.
Be your own bank
Anchor Management lends acquisition and renovation capital between the entities — each loan priced at arm's length and papered, so capital circulates inside the structure, defensibly.
Intercompany ledger
Every dollar moved between your entities — priced, papered, reconciled
Intercompany loans · outstanding
$612K
4 notes · arm's-length AFR
Management fees · annual
$84K
agreement on file
Unpapered movements
2
flagged — draft the notes
Plank-4 ledger law. Every movement resolves to the closed instrument vocabulary and both sides validate — a one-sided entry is an exception, not an entry; booked totals never move on assertion. Owner draws default to uncharacterized — flagged (plank 6), never to a tax answer. AFR is computed from the monthly table, never typed. Lifecycle: proposed → cpa_reviewed → attorney_reviewed → final.
| Flow | Instrument | Amount | Rate / basis | Both sides | Lifecycle |
|---|
Document vault
The paper that makes every position hold up — generated from your structure
Entity & ownership
Tax & substantiation
Audit-defense file
If the examiner calls, this is what's ready — per property, per requirement
STR qualification
Structure & substance
Tax planning calendar
Rental-specific deadlines — including the one that decides your whole deduction
⚓
Placed-in-service before Dec 31
Saguaro Casita must be listed and available to rent before year-end to claim 100% bonus this year. Currently in renovation — 41 days of runway.
Acquisition analyzer
Underwrite a purchase end to end — cash, financing, cash flow, the year-one tax break, and a full hold-period projection
The property
$
Projected income
$
Projected gross revenue: $112,964/yr
Financing & setup
%
$
Operating costs
$
$
Your tax profile
$
Cash flow breakdown
annualThe tax angle
Hold-period projection
Equity
Cumulative cash flow
Why this verdict
Illustrative underwriting, not advice. The tax result assumes a defensible engineering-based cost-seg study, an average guest stay of seven days or fewer, genuine material participation, and personal use within limits — all confirmed by your CPA. Depreciation is subject to recapture on sale.
Show the math · statute & gates
Financing. Monthly P&I is the standard amortization:
PI = L·(r/12) / (1 − (1+r/12)^−(12·n)) where L = loan, r = rate, n = term. Annual debt service = 12·PI.
Operations. NOI = gross − (mgmt% + opex%)·gross − (property tax + insurance)
Net cash flow = NOI − debt service · Cap = NOI / price · DSCR = NOI / debt · CoC = (CF + tax saved) / cash in
The tax angle. Year-one deduction = price × cost-seg% × 100% bonus — §168(k) for property acquired and placed in service after the CFG date, reclassified per an engineering-based study (the evidence object). It offsets active income only through the §469 gate: average stay ≤ 7 days (Reg. §1.469-1T(e)(3)(ii)(A)) and material participation (§1.469-5T) — both computed from facts, both routed to the CPA. Recapture at sale: §1245 ordinary on personal property; §1250 capped at 25% on building.
Gate. This is an underwriting aid, not credit or tax advice — every determination above is the professional's call.
§1031 exchange — the exit, deferred
Sell one door, buy another, defer the gain — with both clocks, both kinds of boot, and the sell-and-pay branch always on screen. Real property held for investment only; the exchange is dead the moment you touch the money.
The relinquished property
$
$
$
$
The replacement
$
$
$
The two clocks — no extensions45 days identify · 180 days close (or return due date — the extension trap)
Constructive receipt — the kill switchQI executed before closing, or there is no exchange
Realized gain—
Boot — cash out + unreplaced debt—
Recognized now = min(realized, boot)—
Deferred—
Carryover basis in the replacement (§1031(d)) — depreciation restarts on this number, not the price—
Sell-and-pay branch — §1250 recapture 25% + LTCG + NIIT (fed, modeled)—
NPV of the deferral — timing, not forgiveness (5%/10yr modeled); step-up at death is the estate cross-ref — routed—
Show the math & law
realized = amtRealized − adjBasis · boot = cashOut + max(debtOld − debtNew − cashAdded, 0) · recognized = min(realized, boot) · newBasis = replCost − deferred (§1031(d)). Sell branch: §1250 recapture at 25% on depreciation taken, LTCG on the rest, NIIT 3.8% — fed only; state stacks on the tax organ. Post-TCJA: real property only; dealer intent routed; related-party §1031(f) 2-yr rule flagged. Identification: 3-property / 200% / 95% — in writing, to the QI.
Gate: routed → CPA (ANC.pos.004) · evidence: executed QI agreement + written 45-day identification + both settlement statements (ANC.evid.020). Until the QI agreement exists, this panel is a model of a plan, not a plan. Clocks derive on the calendar the moment a sale models.
This workstation organizes properties, entities, cost allocation, and documentation. It is not a law or accounting firm and does not provide tax or legal advice or determine tax positions. STR qualification, material participation, cost-segregation allocations, and depreciation positions are fact-specific and must be reviewed by a licensed CPA and/or tax attorney before any filing. Demo portfolio · all figures illustrative.