Why screening matters more than ever in 2026
With bonus depreciation back to a permanent 100% under the OBBBA, the gap between a well-chosen and poorly-chosen STR has never been wider. On a $600k purchase, the difference between a 12% bonus-eligible property and a 28% bonus-eligible property is roughly $96,000 in Year 1 deductions — equivalent to $35,500 in federal tax savings at the 37% bracket.
That's real money. And it's decided by characteristics that are visible from the listing photos and the property record, before you make an offer. The investors who consistently maximize bonus dep do one thing differently: they screen during the search, not after closing.
Signal #1: Land value ratio
Land is never depreciable. The portion of your purchase price that the assessor allocates to land is permanently excluded from any Year 1 deduction.
Most assessors publish a land vs. improvement breakdown for every property. Examples by market type:
- Desert markets (Joshua Tree, Sedona): 11–22% land. Excellent for bonus dep.
- Mountain markets (Smokies, Blue Ridge, Poconos): 14–25% land. Very good.
- Condo markets (Myrtle Beach, Orlando vacation communities): often $0 land. Outstanding.
- Established suburban markets (Cape Cod, Hilton Head): 28–40% land. Acceptable but compressed.
- Premium urban / coastal lots (Big Bear lake-front, Carmel, Aspen): 35–55% land. Compressed deductions despite high prices.
The simple test: two STRs at $700k, one with 18% land ratio and one with 38%. The first has $574,000 of depreciable basis; the second has $434,000. Even before considering finishes, the first property starts the cost seg process with $140,000 more to work with.
Signal #2: Finish quality
The 5-year personal property bucket (highest-value bonus-eligible class) is loaded primarily with finish-level components: cabinetry, countertops, flooring, appliances, lighting, plumbing fixtures, decorative built-ins.
A property with high-end finishes carries more 5-year basis per square foot than an equivalent bare-bones property. Practical signals from listing photos:
- Quartz, stone, or solid-surface counters vs. laminate or formica
- Custom or semi-custom cabinetry vs. stock builder-grade boxes
- Premium appliance brands (Sub-Zero, Wolf, Bosch, Miele, Thermador) vs. base-grade Whirlpool
- Recessed/can lighting vs. surface-mount fixtures
- Solid hardwood, luxury vinyl plank, or stone flooring vs. carpet or sheet vinyl
- Frameless glass shower enclosures vs. fiberglass tub-surrounds
Price per square foot is a reasonable proxy: a $550/SF cabin in Park City has richer finishes than a $230/SF cabin in rural Tennessee, even ignoring location. Higher-finish properties typically produce 5-year ratios of 18–24%, vs. 11–14% for entry-level finishes.
Signal #3: Outdoor amenity stack
The 15-year land improvement bucket is where STRs structurally beat long-term rentals. Outdoor amenities classify as 15-year property eligible for 100% bonus depreciation, and they're exactly what STRs invest in heavily.
The standard high-value 15-year amenities (with typical replacement cost ranges):
- Swimming pool ($45k–$80k) — a single pool can add 8–12% to bonus-eligible basis on a $600k property
- Hot tub or spa ($8k–$18k) — near-universal in mountain markets; check the listing photos for one
- Outdoor kitchen / BBQ area ($12k–$35k) — often missed in default cost seg approaches
- Fire pit / fire feature ($3k–$15k) — common in 70%+ of STRs in mountain and desert markets
- Pergola, gazebo, or covered patio ($8k–$25k) — counts as 15-year structural land improvement
- Outdoor shower ($4k–$12k) — coastal STRs almost always have one
- Hardscape: pavers, retaining walls, dedicated landscape lighting ($15k–$45k) — under-counted by default cost seg
- Dock or shoreline improvements (waterfront only) — full value classifies as 15-year
A property with 4+ of these amenities typically carries $50k–$100k in 15-year improvements alone, separate from the structure. A property with none typically carries less than $15k in 15-year property.
Putting it together: a real comparison
Same market. Same price. The investor who screens picks Property B and pockets an extra $37,400 in tax savings — equivalent to roughly 40% of the down payment recovered in Year 1.
The DepreciMax property report runs this screening automatically using land assessor data and AI photo analysis. $99 per property, closely calibrated to a formal cost seg study. Designed to be run before you make an offer — so you can choose Property B from the start.