I Bought My Airbnb in 2022. Can I Still Get Bonus Depreciation?
One of the most common questions we hear: "I bought my short-term rental in 2022 and didn't do a cost segregation study. The OBBBA made bonus depreciation 100% again — can I go back and get that?"
The short answer: you can do a look-back study and File Form 3115 to catch up on everything you missed. But you'll use 2022's applicable bonus rate — 80% — not today's 100%. Here's what that means in practice and whether it's still worth it.
Bonus Depreciation Rates by Year
| Purchase Year | Applicable Bonus Rate | Note |
|---|---|---|
| 2017 and earlier | 50% | Pre-TCJA rate |
| 2018–2022 | 100% | TCJA full expensing |
| 2023 | 80% | TCJA phase-down begins |
| 2024 | 60% | TCJA phase-down continues |
| Jan 1 – Jan 18, 2025 | 40% | Pre-OBBBA rate |
| Jan 19, 2025+ | 100% | OBBBA permanent restoration |
Wait — the table shows 100% for 2022. That's correct. The TCJA provided 100% bonus depreciation from 2018 through 2022. The phase-down to 80% actually applied in 2023. If you bought in 2022, your look-back study will apply 100% bonus depreciation on qualifying short-life components.
What a 2022 Look-Back Study Looks Like
Let's say you bought your Airbnb for $600,000 in 2022. A cost segregation study identifies $150,000 in 5-year personal property (furniture, appliances, fixtures) and $45,000 in 15-year land improvements (driveway, landscaping, outdoor lighting). The remaining $405,000 stays at 27.5-year residential structure.
Under a 2022 look-back: the $150,000 in 5-year property gets 100% bonus depreciation = $150,000 deduction in 2022. The $45,000 in 15-year land improvements gets 100% bonus depreciation = $45,000. That's $195,000 of accelerated depreciation you should have taken in tax year 2022.
Instead, you took straight-line on the full $600,000 for one year = $21,818. The 481(a) catch-up adjustment is roughly $173,000 ($195,000 minus the prorated MACRS you should have taken, accounting for proper half-year conventions and basis adjustments). That's a six-figure deduction you can claim on your current-year return.
Can You Apply the New 100% Rate to Everything?
No. The OBBBA restored 100% bonus depreciation effective January 19, 2025. That applies to assets placed in service on or after that date. Your 2022 asset is not newly placed in service — it was placed in service in 2022. The look-back study uses the applicable rate for 2022, which for most STR buyers was 100% (unless you bought after 2022).
However, if you purchase new furnishings or make improvements to an existing STR in 2025 (post-January 19), those assets qualify for 100% bonus depreciation at the current rate.
Is It Still Worth It?
Absolutely. A $150,000–$200,000 catch-up deduction, even at an 80% or 100% historical bonus rate, saves tens of thousands in taxes for most investors. The ROI on a look-back study is typically 5x–15x the study fee. The only real question is whether the study fee is worth it given your property's value — and for any property above $200,000, it almost always is.
What You Need to Get Started
- HUD-1 or closing disclosure from your 2022 purchase
- Any construction cost records or invoices for improvements made since purchase
- Prior-year tax returns showing how you've been depreciating the property
- Your CPA's contact info — they'll need to file Form 3115 with your next return
Find Out What Your 2022 Property Is Worth in Catch-Up Deductions
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