Buying a Furnished STR: Reconcile the Seller’s Inventory
Build a usable acquisition file for a furnished vacation rental by reconciling seller inventory, closing documents, and replacement purchases.
Start with what actually transferred
A furnished listing describes the sales offer; the final transaction documents establish what was acquired. Request the executed inventory or bill of sale, note exclusions, and compare it with the walkthrough. Keep the signed version alongside the closing statement. If the seller removes a listed item or provides a credit, record the change instead of relying on the original advertisement. The purpose is to make the study file reflect the transaction that closed.
Build an inventory with a reconciliation column
Use one row for each significant item or clearly described group. Record the room, description, quantity, invoice or seller-inventory reference, and whether the item was retained, replaced, or excluded. Do not invent individual values just to fill a spreadsheet. Mark unsupported amounts for the preparer and study provider to resolve using appropriate evidence. A complete-looking table is less useful than an honest account of what remains unknown.
Keep post-closing purchases separate
An owner often buys replacement beds, appliances, and décor before the first booking. Put those invoices in a separate file and cross-reference the items they replace. Ask the preparer how removed assets should be addressed. If the purchase allocation already includes furnishings, adding a second estimated furniture allowance would obscure the reconciliation. Payment date, acquisition date, and availability for rental use should each be recorded where relevant.
Worked documentation example
Suppose the seller inventory lists six beds, but the walkthrough confirms five beds and one excluded frame. The buyer then purchases two new beds. The file should show the five acquired beds, the exclusion, the two purchases, and which old bed was replaced. This example does not assign a tax value or recovery period; it demonstrates how an inventory can explain the property more accurately than a room-count assumption.
Resolve the allocation with the right people
Send the reconciled facts to the study provider and the return preparer. Ask them to explain how the acquisition allocation and later invoices fit the overall basis schedule. Separate land, building, and acquired contents through a supported process. The IRS depreciation guidance describes basis principles; the workbook is an organizing aid and does not establish fair value, an appraisal conclusion, or a tax classification.
What to send before approving the report
Provide the executed closing documents, retained inventory, exclusions and credits, later invoices, and any existing fixed-asset schedule. Ask for a reconciliation showing that the analyzed costs agree with the approved basis. Keep open questions visible until the provider and preparer resolve them. Download the inventory template below and preserve the original records behind every completed row.
Download the furnished-property inventory template. Blank organizing worksheet; no login required.
Technical reference: IRS Publication 946: basis and depreciation. Templates and examples are organizational aids, not tax conclusions.