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What's your STR's true Year-1 return — with bonus depreciation factored in?

Enter a zip or city and we auto-fill land value and bonus-eligible % from actual DepreciMax market data — county-assessor land ratios and the bonus-eligible averages we've benchmarked across thousands of properties in that zip. See the side-by-side: cash flow alone vs. cash flow plus the Year-1 federal tax savings under §168(k) that most STR underwriting skips entirely.

Your STR Inputs

Straight-Line Dep (no §168(k))
2.0%
After-tax Year-1 cash-on-cash return
Year-1 NOI$53,000
Year-1 debt service$52,186
Year-1 cash flow$814
Tax savings (straight-line dep) from 39-yr SL dep + mortgage interest deduction$3,484
Net Year-1 after-tax cash$4,298
Cash invested$212,500
With Bonus Dep ✓
29.5%
After-tax Year-1 cash-on-cash return
Year-1 NOI$53,000
Year-1 debt service$52,186
Year-1 cash flow$814
Tax savings (bonus depreciation) from $187,000 §168(k) + 39-yr SL on remainder + interest$61,790
Net Year-1 after-tax cash$62,604
Cash invested$212,500
What Bonus Depreciation Adds vs Straight-Line
+$58,306
incremental Year-1 after-tax cash from electing §168(k).
Calculate my actual Year-1 tax savings →

5-Year Outlook

The same property across a 5-year hold — bonus dep concentrated in Year 1, recurring cash flow after.

Year Cash Flow Straight-Line
Net After-Tax		 With Bonus
Net After-Tax		 Δ Bonus Adds
5-Year Δ Bonus Dep Adds
+$59,840
cumulative incremental cash from §168(k) over 5 years
5-Year ROI on Cash Invested (With Bonus)
37.8%
cumulative net after-tax ÷ $212,500 down payment
Year 2–5 cash flow assumes the rent and expense growth rates above. Depreciation recapture on sale, property appreciation, principal paydown, and state taxes are not modeled — this is a federal cash-benefit view only, not a full deal underwrite. For the property-specific line-item bonus dep estimate, run the $99 property report.
22%

National STR median bonus-eligible

Cabin and luxury markets often run 26–34%. See the DepreciMax Top 50 ranking to find your market's typical range.

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What a $99 property report adds

This calculator uses your bonus-elig. % as input. A property-specific AI line-item analysis is closely calibrated to a formal $5K–$8K cost seg study. See what's in a report.

§168(k)

Federal vs. state conformity

Most states conform to federal bonus dep. CA, NY, NJ, PA, IL, MA do not — federal benefit is unaffected; state-level varies. CA non-conformity guide.

Federal §168(k) bonus depreciation assumes the property qualifies for the STR exception under IRC §469(c)(2) and the taxpayer materially participates. Recapture caveat: the 5-yr and 15-yr bonus-eligible property is §1245 — on sale, that depreciation is recaptured as ordinary income at rates up to 37%, not the §1250 25% cap. Bonus dep is a Year-1 deferral, not a permanent tax savings, unless the investor 1031s, dies with stepped-up basis, or sells in a low-income year. State rates and §168(k) conformity reflect 2026 rules; OBBBA's permanent 100% bonus applies to property placed in service after 1/19/2025. This calculator is for educational/scenario use only — not tax advice. Verify with your CPA before relying on these numbers.