Guest-room furniture, fixtures and qualifying finishes
CALIFORNIA HOTEL AND MOTEL OWNERS
Reviewed August 17, 2026 · Updated for current federal bonus-depreciation guidance
Hospitality properties hold layers of shorter-life assets.
Hotels and motels combine guest rooms, furniture, kitchens, laundry equipment, meeting space, recreation and extensive exterior improvements. That mixture can create a meaningful cost segregation opportunity when costs are properly documented.
- ✓ No study work before payment
- ✓ CPA-ready final report
- ✓ California statewide
WHY IT MATTERS
Move eligible basis into faster recovery periods.
A hospitality study must separate building systems from dedicated operating equipment, reconcile owner-supplied FF&E, and identify renovations by placed-in-service year. Franchise property-improvement plans and frequent room upgrades make clean cost records especially valuable.
Plain English: you are not creating a new deduction. You are identifying when supported pieces of the property may be depreciated.
WHAT WE REVIEW
Common hospitality components reviewed
Commercial kitchen, bar and laundry equipment
Pool, spa, recreation and outdoor amenities
Parking, walks, signage and landscaping
Dedicated electrical, plumbing and specialty systems
Franchise renovations and property-improvement plans
SHOW ME THE NUMBERS
Illustrative hotel example
Illustrative only. This assumes a 37% federal marginal rate where shown and that the owner can currently use the deduction.
- Property value
- $12,000,000
- Estimated depreciable basis
- $9,600,000
- Potential faster basis
- $2,400,000 to $3,360,000
- Potential upfront federal effect
- $888,000 to $1,243,000
- Study or comparison benchmark
- $15,000 to $30,000+
This is a timing illustration, not guaranteed permanent tax savings. California commonly requires a separate depreciation schedule because it generally does not conform to federal bonus depreciation.
DOES IT FIT?
Strong candidates usually have four things.
✓
Hotel, motel or extended-stay property
✓
Recent purchase, construction or renovation
✓
FF&E and building costs can be reconciled
✓
Owner expects to hold and use the deductions
PORTFOLIO PRICING
More properties. Lower cost per study.
Order and pay for the properties together to receive a simple portfolio discount.
2 properties5% off3 to 4 properties10% off5+ properties15% off
STRAIGHT ANSWERS
Frequently asked questions.
Can a hotel renovation receive a separate study?+
Yes. A separately placed-in-service renovation can be analyzed using supported project costs, while prior assets and dispositions are reconciled with the owner’s CPA.
Are guest-room furnishings already short-life property?+
Often, but only if they are separately identified. A study can reconcile furnishings and locate qualifying building-related components without double counting.
Is the free estimate a completed study?+
No. It is an illustrative screen using the facts you provide. No engineering takeoff, professional certification or tax opinion is included. Technical work begins only after a signed and paid engagement.
Does my CPA need to approve the study first?+
No. It is smart to ask whether you can currently use additional depreciation, but the paid study does not require advance CPA approval. Your CPA makes the final filing decision.
Do you guarantee tax savings?+
No. A study accelerates the timing of eligible depreciation. Results depend on basis, property facts, placed-in-service dates, passive-loss rules, tax rates and the owner's filing position.
AUTHORITATIVE SOURCES
Reviewed against current IRS and California guidance.
Last reviewed August 17, 2026. Tax rules and procedures can change. Your CPA should confirm the law that applies to your acquisition date, placed-in-service date and return.
FREE PRELIMINARY PROPERTY SCREEN