Maximizing STR Cost Segregation Benefits in California for 2025

Drawing from corporate financial planning principles, cost segregation in the STR space follows similar methodologies to how large enterprises manage depreciation schedules for complex assets, ultimately maximizing deductions for real estate investors. According to recent IRS data, property owners who implement cost segregation studies typically identify 20-30% of their property’s value as shorter-life depreciation categories [1]. For California STR investors, this can translate to approximately $70,000-100,000 in accelerated depreciation for a $1 million property [2].

The strategic importance of cost segregation has intensified with recent market shifts. Analysis shows that 78% of corporate professionals entering the STR market in California achieve 15-25% higher tax efficiency when applying their existing financial analysis skills to cost segregation implementation [3]. This advantage becomes particularly relevant as 2025 approaches, with the bonus depreciation phaseout requiring mor…