Event-driven FF&E density
SXSW, F1, ACL, UT football. Austin STRs need premium furnishings to command event-week rates — $30K–$60K of FF&E per property, all classified as 5-year personal property under MACRS. National calculators miss this.
Built for Austin STR owners
Austin Airbnb cost segregation,
Austin Airbnb cost segregation,
by the actual numbers.
Most Austin STR owners over $200K basis save $25K–$80K in Year 1. See what it looks like for your neighborhood, your property tier, your tax year. 30-second estimate, no signup.
✓ 60-day money-back guarantee ✓ Engineer sign-off ✓ IRS ATG aligned
Estimate (live)
Updates as you type
$600K
Use type
Estimated Year-1 federal savings
$0
on $0 of accelerated deductions
Estimate is illustrative. Final number is engineered to your specific property and reviewed by a licensed engineer.
$48,200
Median Year-1 savings for Austin STRs over $500K basis (2025 OBBBA bonus depreciation, illustrative).
< 1 hr
Typical study turnaround at Cost Seg Smart.
$495
Entry price. Most Austin STRs land at the $795 or $895 tier.
If your Austin property is over $200K basis and held for 12+ months, you can run the full study at costsegsmart.com — typically delivered in under an hour from $495. Order at Cost Seg Smart →
Why Austin is different
What pushes Austin STR savings higher than the national average.
National cost-seg calculators assume stable mid-market rentals. Austin STRs don’t behave that way — and four local factors push the math in your favor.
No state income tax
Texas adds zero state-side complexity. Your federal benefit IS your benefit — no decoupling math, no state addback, no separate depreciation schedule. Cleanest STR cost seg in the country.
Pre-2023 build advantage
Most East Austin / Mueller / South Congress STRs were built or substantially renovated 2010–2019. That’s the sweet spot — modern systems (HVAC, electrical, finishes) classified as 5/7-year, not 27.5.
Material participation friendly
The 7-day average-stay rule fits Austin’s event-heavy STR pattern naturally. If you self-manage, you almost certainly clear the 100-hour bar. Active losses against W-2 income become reachable.
What it actually looks like
Three real Austin STR scenarios.
Numbers from our Austin client base, 2024–2025 placed-in-service. Component allocations follow IRS Cost Segregation Audit Techniques Guide methodology with RSMeans 2024 cost basis. Actual results vary with property age, condition, and basis allocation.
2BR · ~1,400 sqft · full-time STR
Property$550K
Reclassified into 5/7/15-yr$122K
Year-1 federal savings$45,200
Study cost$795
3BR · ~2,100 sqft · part-time STR + family use
Property$875K
Reclassified into 5/7/15-yr$168K
Year-1 federal savings$62,200
Study cost$895
Luxury 4BR · ~3,800 sqft · full-time STR
Property$1.6M
Reclassified into 5/7/15-yr$384K
Year-1 federal savings$142,000
Study cost$1,295
These are real client outcomes. To see one in full, browse a sample Austin report → at costsegsmart.com.
When the math doesn’t work
Two situations where we’ll tell you to skip it.
We won’t sell you a study that doesn’t pencil. Almost everything else — long-term holds, mid-term rentals, owner-occupied portion, recent renovations — typically does.
Property under $150K basis
The $495 study still produces a net benefit, but it’s small enough that it’s marginal — typically $3K–$5K Year-1 savings. Worth doing if you’re already filing the return; not worth a special trip.
Selling within 12 months without a 1031 exchange
Depreciation recapture on sale will eat most of the Year-1 acceleration. Wait, do the 1031, or hold longer.
Everything else — long-term holds, mid-term rentals, owner-occupied portion, conversion plays, recent renovations, multi-property portfolios — typically pencils.
How we calculate Austin numbers
RSMeans 2024 Austin construction multipliers + Travis County assessor data.
We use RSMeans 2024 cost data with Austin-specific regional multipliers, Travis County tax assessor records for land allocation, and the IRS Cost Segregation Audit Techniques Guide methodology. No site visit needed for residential or small-commercial under $5M. An engineer reviews and signs off on every report before delivery.
Full methodology details →-
IRS ATG AlignedMirrors Publication 5653
-
RSMeans 2024Engineering-grade component pricing
-
Engineer Sign-OffEvery study, no exceptions
-
60-day money-backIf your CPA can’t use the report
Questions
Austin-specific things people ask.
Does Austin’s STR ordinance affect my cost segregation deduction?
No — IRS rules are federal; local ordinance affects operations, not depreciation. Your basis is your basis regardless of what Austin City Council does with type-2 short-term rental zoning. The federal Year-1 deduction sits on top of whatever your STR compliance status is.
I have a homestead exemption on part of the property — does cost seg still work?
Yes, on the rental portion only. An engineer scopes the basis allocation between primary residence and rental — the rental portion gets full cost-seg treatment, the homestead portion doesn’t qualify. Common for ADUs, garage conversions, and owner-occupied duplexes in East Austin.
Travis County reassessed me. Does that change the cost-seg numbers?
No. Reassessments affect property tax (your local TCAD bill), not the IRS basis you use for federal depreciation. Your cost-seg basis is your acquisition cost (closing-disclosure number) plus any subsequent capital improvements — not the assessor’s market value.
I’m doing a 1031 from California to Austin. Can I cost seg the new property?
Yes — common play. The carry-over basis from the relinquished property plus any boot becomes the new basis. Cost seg can run on that basis. Your CPA has to coordinate the IRC §1031 deferral and §168(k) bonus depreciation properly; the cost-seg study sits on top of whatever basis lands.
My East Austin property is in a zoning district fighting the new STR code. Does that matter for cost seg?
Operationally maybe, depreciation no — your basis is your basis. As long as the property is income-producing in the tax year, it qualifies. If the City eventually forces a use change, you may face recapture later, but that’s a separate question from whether cost seg makes sense now.
How does Austin compare to Nashville, Miami, or Denver for cost-seg ROI?
Austin is in the top quartile due to no state income tax + event-driven FF&E density. Nashville and Miami are similar. Denver is slightly lower because Colorado partially decouples from federal bonus depreciation. For Austin owners, the federal benefit IS the whole benefit — clean, fast, no separate state schedule.
Have a question we didn’t cover? Email support@costsegsmart.com or see the full FAQ at Cost Seg Smart →
Ready to see your number?
Order your Austin STR study —
under 1 hour, from $795.
We generate the engineered PDF, an engineer signs off, your CPA files. Most Austin STRs land in the $795–$1,295 tier depending on basis.
60-day money-back guarantee · CPA-Ready · Engineer signs every study