Cost segregation for hotel properties
Cost-seg feasibility for hotel properties under OBBBA-current 100% bonus depreciation. With a worked $5M small hotel example.
How the engine allocates basis for hotel properties
The TaxProtestTx feasibility estimator uses IRS-Audit-Techniques-Guide-calibrated base allocation percentages by property type. For hotel properties the starting point is:
Feature adjustments — pool, custom kitchen, extensive landscaping, large lot, fence length, etc. — push the 5-year and 15-year buckets up from these baselines, capped at a combined 50% of basis (the engineering-firm outer bound for residential/small commercial under the IRS ATG).
Worked example — $5M small hotel
Sample property purchased in 2026 (post-OBBBA, 100% bonus), with a 37% federal marginal bracket and real-estate-professional status:
The screening label is a calibration around the typical $5,000 floor at which property owners commonly evaluate commissioning a full engineering study. §1245 recapture exposure is elevated for this property type at short hold periods.
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