Quick heads-up: I'm an interior designer, not an attorney, CPA or financial advisor. This post is general information, not legal, tax or financial advice.
The short answer: Under current law, 100% bonus depreciation lets STR owners deduct qualifying property (like furniture and fixtures) in the year the rental is placed in service. For a rental, that generally means ready and available to rent. If your property isn't guest-ready by December 31, the deduction can slide into next year. A fast, organized design process protects your timing.
I'm an Airbnb and short-term rental interior designer, not a CPA. I want that on the record before we talk about taxes, because I'm about to talk about taxes.
Here's why. Almost every STR investor I've talked to this year has opened with some version of "my accountant says I need to get this thing furnished before the end of the year." And they're right. Your design timeline isn't just about when you start getting bookings anymore. It's tangled up with one of the biggest tax incentives real estate investors have seen in years.
Let's untangle it, casually.
What is 100% bonus depreciation, in plain English?
When you buy a rental property, the IRS doesn't let you deduct the whole cost at once. You spread it out over years through depreciation. The building itself gets spread over 27.5 years, which is roughly the attention span of a tax code, so, forever.
But not everything in your rental is "the building." Furniture, appliances, decor, certain fixtures and some outdoor improvements have much shorter depreciation schedules. The IRS lists furniture used in a rental activity as 5-year property in Publication 527.
Bonus depreciation lets you deduct qualifying shorter-life property in year one instead of spreading it out. The One Big Beautiful Bill Act, signed in July 2025, permanently restored 100% bonus depreciation for qualifying property acquired after January 19, 2025. It had been phasing down. Now it isn't.
Translation: the stuff that makes your STR bookable is often the stuff that can be deducted fastest.
What does "placed in service" mean for a short-term rental?
This is the part that turns your designer into a scheduling concern.
You can't take depreciation on property that's sitting in a box in your garage. Depreciation starts when property is placed in service, which the IRS describes for rental property as when it's ready and available for rent (Publication 527 and Publication 946 cover the details).
That's not "I closed on it." That's not "the sofa is on backorder but it's coming." It's closer to: a guest could book this place and actually stay in it.
So if you closed on a cabin in September and it's still a beige echo chamber with one folding chair on December 31, you may be looking at next year's tax return for that deduction instead of this one. Your CPA will tell you exactly where your line is. My job is making sure you're on the right side of it.
Why do STR design projects run late?
I love this industry, and I will still tell you it is a professional delay machine. The usual suspects:
Backorders. That perfect performance-fabric sofa has a 14-week lead time and you found out at checkout.
Decision fatigue. You picked 40 throw pillows. You love none of them. Three weekends gone.
Contractor stacking. The painter can't start until the electrician finishes, who can't start until the fixtures arrive, which are, you guessed it, backordered.
Distance. Many STR investors don't live near their rental. Every "quick trip to check on it" is a plane ticket.
The last 10 percent. Linens, kitchen kits, guest guides, smoke detectors, the coffee setup. The unglamorous stuff that actually makes a place rentable takes longer than anyone budgets for.
None of that is a moral failing. It's just what happens without a plan, and in Q4 it costs more than it used to.
How do you furnish a short-term rental fast without it looking rushed?
This is the actual design part. Here's how I approach a deadline-driven STR install.
1. Design to what's in stock, not what's on Pinterest. A guest has never left a review that said "I could tell the coffee table was a compromise." We source pieces with real availability first, then layer in personality with art, textiles and lighting, which ship fast and do most of the visual heavy lifting anyway.
2. Lock the plan before anything gets ordered. A complete design plan (layout, FF&E list, finishes, and a room-by-room shopping list) means every order goes out in one push instead of trickling out over two months.
3. Design for the photos and the reviews at the same time. Your listing photos sell the first booking, which Airbnb's own listing photo tips back up. Durable, cleanable, comfortable choices earn the fifth-star review. Rushed doesn't have to mean flimsy.
4. Treat "guest-ready" as a checklist, not a vibe. Beds made, kitchen stocked, safety items installed, Wi-Fi working, check-in instructions done. If a guest could book it tonight, you're there.
5. Keep receipts like they're evidence. Because they are. The IRS expects you to keep records that support your deductions. Itemized invoices and a clean furniture list make life easier for your CPA, and for a cost segregation study if you get one (more on that in our guide to FF&E and cost segregation).
Is it too late to get my STR ready this year?
Maybe not. It depends on what's already done, what's in stock and how fast you can make decisions. A turnkey install on a tight runway is a different project than a slow-burn custom design, and that's fine. You can absolutely do a fast, beautiful, bookable version now and add custom pieces later.
What I'd avoid: waiting until December to start. Shipping slows down, contractors book up for the holidays, and you'll be choosing between "done" and "good" when you could've had both.
Which Sukkha package fits a year-end deadline?
Quick rundown of how I'd match our services to your situation:
Already furnished, just tired? A Jumpstart session gets you a punch list of high-impact updates you can execute fast.
Empty or half-done and you'll handle the install? A Design Plan gives you the full layout, sourcing list and links so you can order everything in one go.
Empty, remote and on a deadline? Full-Service STR design is built for this. We handle design, sourcing and coordination so you can relax.
FAQ
Does buying furniture automatically qualify for bonus depreciation? Not automatically. It generally needs to be qualifying property used in your rental business and placed in service. Your CPA confirms what qualifies for your situation.
Do I need to have bookings before December 31? The IRS standard for rental property centers on being ready and available for rent, not on having a guest already checked in. Ask your CPA how to document that, like an active listing and completed setup.
What if my property is a tiny home? Same idea, smaller footprint. Tiny homes can move faster because there's less to furnish, though custom built-ins can add lead time. Talk to your CPA about how the structure itself is classified.
Can Sukkha work with my property if I'm not local? Yes. We design STRs and tiny homes for clients nationally, and most of our process is remote.
Should I get a cost segregation study? That's a CPA conversation. It's commonly paired with bonus depreciation for STRs, and good design documentation helps either way.
Ready to beat the calendar?
If you closed on an STR this year and it's not guest-ready yet, let's talk now, not in mid-December. Tell me what you've got, where it is and when you need it bookable, and I'll tell you honestly what's realistic.
Book a design consult at sukkhainteriordesign.com/contact and let's build a space that books itself.
This post is general information, not legal, tax or financial advice. I'm a designer, not an attorney, CPA or financial advisor. Tax rules depend on your situation. Talk to a qualified CPA or tax advisor before making decisions.
If you are looking to transform your space, interested in Asheville real estate, or just want to say hi, I'd love to connect!
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