First property and STR loophole with bonus depreciation

[John Lim]

Hi- I’m new to the forum and I’d greatly appreciate any advice.

I am under contract for a SFH property in metro Austin Area with a target closing date of end of May. Starting next year, I'd like to use the property as a primary residence, but I'm trying to take advantage of bonus depreciation running it as STR for remainder of the year and take the paper loss against my spouse's w2 income. The purchase price is around $2m and tax assessed value is around $1.3m. I'm thinking of spending about $200k for renovation adding a bathroom and a pool. Assuming I close by end of May and start Airbnb by end of June, I'd greatly appreciate if someone could shed some lights on below questions.

1. Is the cost segregation exercise worthwhile given the purchase price ($2M)? How much does it typically cost for a SFH?

2. Is the bonus depreciation calculated based on tax assessed value or PP?

3. Would I be able to get the full 60% bonus depreciation or is it prorated based on the length of ownership this year?

4. If I get a small construction loan to the property and pay interest expense, would this qualify as a business expense (adding pool and etc)?

5. If I start running it as STR starting in June of this year, do I have sufficient time to meet material participation? I'm unemployed at the moment and will be an active manager.

6. For renovation ($200k), it might take some time to get permits (ie, pool and additional bathrm) so plan to start it in late November. Can the renovation cost treated as a property expense? Should I run a cost segregation after completion of project and bake it as part of increase in basis?

7. The property is 2 stories with two separate access points. So from 2025, I'm thinking of living upstairs and running bottom floor (half of total RSF) as an STR. Can I still take advantage of STR loophole for 2025 tax?