Using Cost Segregation to Transform Short-Term Rentals into W-2 Tax Offsets
· · 60 min
About this webinar
Since the One Big Beautiful Bill Act (OBBBA) of 2025, the short-term rental landscape has shifted dramatically. Bonus depreciation — once headed for a full phase-out — is back at 100%, putting the short-term-rental strategy back at the center of tax planning for high-income clients.
This session goes beyond the basics of Section 469 into the mechanics of engineering non-passive losses. We'll work through the intersection of cost segregation and the 7-day average-stay rule, and how to turn property depreciation into immediate offsets against W-2 and active income.
You'll leave with a practical framework for defending material participation and applying the latest 2026 Treasury guidance on asset reclassification.
What you'll learn
- Evaluate how the One Big Beautiful Bill Act's restoration of 100% bonus depreciation affects short-term rentals, and identify the transition-year elections for property placed in service across the change.
- Apply Treasury Regulation §1.469-1T(e)(3)(ii)(A) to calculate average periods of customer use and work through the “significant personal services” exception for stays of 30 days or less.
- Implement documentation standards that satisfy the “100-hour and more than anyone else” material-participation test, so client losses withstand IRS scrutiny.
- Identify 5-, 7-, and 15-year property classes within STR assets to maximize the net present value of tax deferrals through engineered cost segregation studies.
Who should attend
Your presenter
Sean Click
Regional Business Development Manager · Cost Segregation Guys
Sean is a tax-strategy professional and business-development leader with deep experience delivering specialized tax-mitigation solutions for commercial real estate and corporate clients. At Cost Segregation Guys he focuses on engineering-based cost segregation studies and R&D tax credits, helping developers and investors maximize their savings through strategic consulting.
Earlier in his career he served as a tax-strategy consultant focused on cost segregation and §1245 solutions, managing complex recapture mitigation for clients, and spent time at Thomson Reuters managing global indirect-tax solutions alongside Big Four firms and major ERP partners.
A University of Michigan alumnus based in Chicago, Sean is a frequent resource for CPA firms and real estate professionals, bridging engineering-based tax incentives and bottom-line results.
Course information
- Field of study
- Taxes
- CPE credit
- 1 CPE Credit
- Program level
- Basic
- Prerequisites
- None
- Advance preparation
- None
- Delivery method
- Group Internet Based (live webinar)
What you'll need
- • A computer or device with internet access (Zoom)
- • To earn CPE: attend live and stay for the full session
- • Your join link will be emailed after you register