# CostSegW2

> The STR / W-2 offset vertical of Cost Seg Smart. Engineering-based cost segregation studies that convert short-term rental losses into Year-1 W-2 tax savings under IRC §469 + Treas. Reg. §1.469-5T material participation + bonus depreciation.

CostSegW2 is operated by Cost Seg Smart LLC. We do one thing: cost segregation studies for short-term rental owners with W-2 income. Our reports follow the IRS Audit Technique Guide for Cost Segregation (Pub. 5653) and use RSMeans 2024 cost data.

## What we do

- **Engineering-based cost segregation studies** for short-term rentals (STRs) — Airbnb, VRBO, vacation rentals
- Studies are designed to convert STR losses into **non-passive losses** that offset W-2 income, leveraging the 7-day average rule under §469 + material participation under Treas. Reg. §1.469-5T
- Reports include 5/15/27.5/39-year asset reclassification, depreciation schedules, IRS Form 3115 (if needed), and full audit-ready workpapers
- All reports come with a **CPA-Ready Guarantee**: if your CPA can't use it, we revise it free or refund the study fee

## How it works

1. **Order online** at [costsegsmart.com/order/](https://costsegsmart.com/order/?ref=w2&utm_source=costsegw2&utm_medium=site&utm_campaign=w2_offset) (~5 min)
2. **Upload property data** — closing docs, appraisal, blueprints (~10 min)
3. **We engineer the study** — IRS-compliant report and workpapers, typically delivered same-day
4. **Hand to your CPA** — they file with your return; refund hits 2–6 weeks later

## Pricing

- **Compact** — $495 — Properties under $300K basis
- **Standard** — $895 — Properties $300K – $1.5M (most common tier)
- **Premium** — $1,495+ — Properties $1.5M+ / multi-unit

All tiers include the same engineering team, IRS-compliant workpapers, and CPA-Ready Guarantee.

## Who this is for

- Short-term rental owners with **W-2 income above ~$100K**
- Properties operated as **STRs with average guest stays of 7 days or less** (the §469 7-day average rule)
- Owners who can **materially participate** (100+ hours managing the STR, more than anyone else)

## Who this is NOT for

- Long-term rentals where average stay exceeds 7 days (you'd need REPS — Real Estate Professional Status — instead)
- Owners using a full-service property manager (kills material participation)
- Properties under ~$200K basis (study fee can outpace marginal benefit)
- Investors without W-2 or other active income to offset

## Key citations

- IRC §469 — passive activity loss rules
- Treas. Reg. §1.469-1T(e)(3)(ii)(A) — 7-day average rule
- Treas. Reg. §1.469-5T — material participation (seven tests)
- Rev. Proc. 87-56 — MACRS asset class lives
- IRS Pub. 5653 — Cost Segregation Audit Technique Guide

## Parent organization

CostSegW2 is a vertical of **Cost Seg Smart** ([costsegsmart.com](https://costsegsmart.com)) — an automated cost segregation study business serving residential investors and the CPAs who serve them. Same engineering team. Same methodology. Same guarantees.

## Contact

- Email: support@costsegsmart.com
- Order: [costsegsmart.com/order/](https://costsegsmart.com/order/?ref=w2)