STR Cost Segregation: Document Checklist
Prepare acquisition, furnishing, renovation, and rental-use records for a short-term rental cost segregation study and a smoother CPA handoff.
Build one property file
Before requesting a study, create a folder for each property and use the same property identifier in your bookkeeping. Include the ownership entity and the people authorized to supply documents. A purchase address, listing nickname, and LLC name can all refer to the same asset; resolving that early makes later reconciliation easier.
Acquisition and existing schedules
Collect the closing statement, purchase agreement, appraisal if available, and supporting land allocation records. Include the most recent fixed-asset ledger and depreciation schedule even if the property was purchased several years ago. A study preparer needs to know what has already been capitalized so the report can be reconciled to the tax records.
Furniture and equipment
Save the seller’s bill of sale and inventory separately from furniture bought after closing. For each item, record description, cost, invoice date, and the property where it is used. Photos help connect a description to an actual asset. Mark replacements and items moved from another property; a recent photograph is not proof of a recent purchase.
Renovations and construction
Request itemized contractor invoices, change orders, schedules of values, and available plans. Keep deposits linked to final invoices so payments are not double-counted. Identify work still in progress and distinguish it from completed improvements. Where an invoice combines building work and furnishings, ask the contractor for a factual breakdown rather than inventing one.
Rental operations and the CPA handoff
Maintain a timeline of acquisition, conversion, first availability, later improvements, and any change in use. Supply the preparer with rental calendars and personal-use records through a secure channel. Operational information complements the property study but does not replace the evidence supporting costs. Agree on the format of the final asset schedule and the person who will resolve open questions.
When something is missing
Make a missing-document list rather than silently substituting estimates. Ask the study provider what alternative evidence is suitable and how assumptions will appear in the report. Preserve the original files alongside the final report so a later preparer can understand the basis for the work. Request the secure upload instructions during discovery; do not put tax returns or sensitive documents in a public website form.