68-3942 Makana Kai St, Unit 102, Waikoloa, HI 96738 — $575,000 | Deal Finder

$575,000

68-3942 Makana Kai St, Unit 102, Waikoloa, HI 96738

Big Island

2 bed2.5 bath1,017 sqftBuilt 2026

Condo / Townhouse

Estimated Year 1 Tax Savings

$0 – $0

3.3x – 8.3x faster than standard 27.5-year depreciation

Based on $575,000 purchase price at 32% effective tax rate · 100% (OBBBA — permanent)

Standard vs. Accelerated Depreciation

See how cost segregation accelerates your deductions into Year 1.

Acceleration multiple: 5.5x more in Year 1 than straight-line depreciation

Is a Cost Segregation Study Worth It?

Estimated Study Cost

$4,000 – $7,000

Potential Year 1 Savings

$13,800 – $34,500

Estimated return on study investment: 2.0x – 8.6x

A $7,000 study could return $23,000+ in Year 1 tax savings

Tax Strategies for Your Situation

100% Bonus Depreciation (OBBBA 2025)

The One Big Beautiful Bill Act restored 100% bonus depreciation permanently for property placed in service after January 19, 2025. All reclassified components can be fully deducted in Year 1.

The 7-Day Rule (IRC §469)

If you (or your property manager) spend 750+ hours/year managing this STR and the average guest stay is 7 days or less, losses could offset your active income. This determination is critical — discuss with your CPA.

Real Estate Professional Status (REPS)

If you or your spouse works in real estate (agent, property manager, developer) and spends 750+ hours/year in real estate activities, REPS could allow all real estate losses to offset active income. Worth discussing with your CPA.

Section 199A — 20% QBI Deduction

STRs that qualify as a business activity may be eligible for a 20% deduction on qualified business income — separate from and in addition to depreciation deductions. Made permanent by the OBBBA.

Depreciation Recapture (Plan Your Exit)

Accelerated depreciation is recaptured at 25% upon sale. Mitigation strategies include 1031 exchanges (defer indefinitely) and holding until death (stepped-up basis eliminates recapture for heirs).

Catch-Up Depreciation (Form 3115)

Property owners who didn't do a cost seg study at purchase can retroactively claim all missed accelerated depreciation in one year via Form 3115.

Assumptions: Estimates above assume a 32% tax bracket, STR planned use, and 100% bonus depreciation under the OBBBA (2025). Your actual savings depend on your individual tax situation. Personalize your strategy below to see exactly which strategies apply to you and your specific tax savings.

This is an AI-assisted estimate for educational purposes only — not tax or legal advice. Always confirm with a qualified CPA before making tax decisions.

Personalize Your Tax Strategy

Answer 6 questions to see exactly which strategies apply to your situation and your real tax savings.

Educational only; not tax or legal advice. Consult your CPA before making decisions.