Cost segregation - SFR acquired in 2021 followed by full reno

[Charles Baker]

Scenario: We acquired an SFR in the Southern California mountains in 2021. Over the past 15 months we've been doing major renovations. Work is basically complete. First STR guest has booked for the last week of 2022, so we'll be able to place the asset into service for 2022. Acquisition cost was $700k; reno costs about $165k; furnishings about $35k. How does our renovation and furniture expense factor into a cost segregation study? Do we use the current basis (acquisition plus reno cost) as the starting point? Thanks in advance.