Luxury / desert · California

Palm Springs, CA short-term rental cost segregation calculator

Model Year-1 §168(k) bonus depreciation on a typical Palm Springs, CA short-term rental. Inputs pre-filled with Palm Springs's Top 50 median land ratio (28.0%) and bonus-eligible percentage (23.3%) from the DepreciMax 2026 Short-Term Rental Bonus Depreciation Study, n=29 scored listings. Adjust anything to model your specific property.

Direct answer: On the Palm Springs, CA Top 50 median STR ($769,000 purchase, 23.3% bonus-eligible), a cost segregation study identifies about $179,177 as 5- and 15-year §168(k)-eligible property in Year 1. At a 35% federal marginal bracket, that's roughly $62,712 in Year-1 federal tax savings against W-2 income when §469(c)(2) STR loophole treatment applies. California does not conform to federal §168(k) — CA requires a state add-back that defers the state benefit over the property's life. Your federal savings are unaffected and represent the bulk of the Year-1 benefit.

Palm Springs, CA short-term rental — Top 50 medians

Median STR price
$769,000
Land-value ratio
28.0%
Bonus-eligible %
23.3%
Year-1 §168(k) deduction
$179,177
Year-1 federal tax savings (35% bracket)
$62,712

Palm Springs is a high land-ratio desert market — 28% median reflects the value density of Coachella Valley infill lots. Mid-century modern homes with private pools, casitas, and outdoor kitchens push 15-year land-improvement classification well above most STR markets, and interior FF&E (design-forward furnishings) lifts 5-year personal property.

Data source: DepreciMax Top 50 STR Bonus Depreciation Market Study, snapshot 2026-07-18 (methodology v1.1). 29 scored listings for this market. Land ratio from FHFA WP 19-01 zip-level assessor data. Bonus-eligible % from per-listing Path-A scoring, Airbnb-weighted market medians. State conformity: decoupled per DepreciMax state-conformity dataset (CC BY 4.0). Values refresh annually.
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Run the calculator with Palm Springs, CA presets

Open the free DepreciMax cost segregation calculator pre-loaded with Palm Springs, CA's Top 50 median inputs. Adjust price, bracket, gross rental, and operating expenses to model your specific property. No signup required for the base estimate.

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Common questions about Palm Springs, CA cost segregation

How much bonus depreciation can I claim on a Palm Springs, CA short-term rental?

On the DepreciMax Top 50 median Palm Springs, CA STR ($769,000 purchase price, 23.3% bonus-eligible per §168(k)), the Year-1 deduction is approximately $179,177. At a 35% federal marginal bracket, that translates to about $62,712 in Year-1 federal tax savings — offsetting W-2 income when the STR loophole under §469(c)(2) applies. California does not conform to federal §168(k) — CA requires a state add-back that defers the state benefit over the property's life. Your federal savings are unaffected and represent the bulk of the Year-1 benefit. Source: DepreciMax Top 50 STR Bonus Depreciation Study, snapshot 2026-07-18.

Does California conform to federal bonus depreciation for short-term rentals?

California does not conform to federal §168(k) — CA requires a state add-back that defers the state benefit over the property's life. Your federal savings are unaffected and represent the bulk of the Year-1 benefit. Federal §168(k) savings remain the bulk of the Year-1 tax benefit either way. See the DepreciMax California state conformity page for the exact treatment.

What's the median bonus-eligible percentage for Palm Springs short-term rentals?

Palm Springs, CA's median bonus-eligible percentage is 23.3% of purchase price, per the DepreciMax 2026 Top 50 Short-Term Rental Bonus Depreciation Study (snapshot 2026-07-18, n=29 scored listings). Palm Springs is a high land-ratio desert market — 28% median reflects the value density of Coachella Valley infill lots. Mid-century modern homes with private pools, casitas, and outdoor kitchens push 15-year land-improvement classification well above most STR markets, and interior FF&E (design-forward furnishings) lifts 5-year personal property. Individual properties vary — a $99 DepreciMax property report analyzes 7-9 property photos with AI to produce a line-item breakdown closely calibrated to a formal $5,000-$8,000 cost segregation study.

Related resources for Palm Springs, CA STR investors

Palm Springs market page

Deeper Palm Springs-specific market data — density of high-bonus properties, comparable listings, and market rank in the DepreciMax Top 50.

All 10 market calculator variants

Compare bonus-eligible percentages and Year-1 savings across the 10 highest-volume STR markets side-by-side.

Property-specific report ($99)

AI photo analysis of your specific Palm Springs property — line-item breakdown closely calibrated to a formal $5,000-$8,000 cost seg study.

California state conformity

Exact California treatment of federal §168(k) bonus depreciation for STR investors.

DepreciMax 2026 STR Study

197 US STR markets ranked by bonus depreciation potential. Palm Springs's 23.3% comes from this dataset.

DepreciMax vs. formal cost seg study

When to use the DepreciMax $99 estimate vs. commissioning a $5,000-$8,000 engineering study on your Palm Springs STR.

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: 5-yr and 15-yr bonus-eligible property is §1245 — on sale, that depreciation is recaptured as ordinary income at rates up to 37%. 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. California conformity reflects 2026 rules verified against primary state DOR sources. OBBBA made 100% bonus permanent for property placed in service after 1/19/2025. This tool is for educational scenario use only — not tax advice. Verify with your CPA before relying on these numbers.