First year depreciation in STR

[Anna Thanopoulou]

Hi everyone. 

We purchased a property in early October and are placing it in service this week (mid November).

We had intended to run a cost segregation study and try to accelerate depreciation which we can deduct against our W2 (assuming material participation).

However, we have been reading through the IRS guidelines (eg publication 946 on Property Depreciation) and there seems to be the concept of "short year" which would mean that we can only deduct ~1.5/12 of a year's worth of depreciation in 2024.

Is this correct or are there any different rules for STRs specifically? We have been swept by the influencers touting the benefits of cost seg, so we are wondering how come nobody ever mentioned that it might not fully appy during the first year in service.

Many thanks in advance