I also think of property locations and property conditions having different classifications. 

@Alicia Howard Since your 5th wheel RV is used exclusively as a short-term rental property and does not move, its depreciation depends on its classification.

Thank you for sharing your experience here; it’s a good reminder to be extra careful when dealing with properties like this.This post has definitely made me realize how important it is to double-check zoning and property classifications before closing on a deal.

We are not real estate professionals.1) How would you handle the classification of the property in the 2023 tax year and would you utilize a STR depreciation strategy?

@Jay Fayz for SFR (1-4 family) Classifications are mostly opinion-based.Not aware of anyone tracking eviction rates, except Evictions Lab nonprofit that doesn't like landlords.Here's some info that might helpt:---------------------------------------------------------------------------------------------------Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

Real estate transactions, especially flips, come with specific tax implications such as the potential for dealer classification, short-term capital gains, and cost allocation for renovations, which can significantly impact your tax liability.

Quote from @Benjamin Ying: @Michael Smythe I'm new here, how do you determine property class if you're looking on Zillow?

Cost segregation utilizes the MACRS approach. The key is to identify personal property from real property. Tangible personal property identified in a cost segregation study is what allows you to accelerate depreciatio...

If I were going to buy in FL I would get to her class if still offered.

STRs also avoid automatic classification as passive if rented for seven days or fewer per tenant.To maximize tax benefits, maintain detailed logs of all hours worked on activities like tenant communication, cleaning, maintenance, and marketing.