Worked Examples
Worked Examples With Hypothetical Numbers
A set of clearly labeled hypothetical examples with invented numbers showing single rentals, short-term rentals, commercial buildings, catch-ups, sales, and unusable losses.
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These worked examples use invented numbers to show how the reasoning on this site plays out. Every example is labeled hypothetical at the top. None of them describes a real property, predicts a result, or promises savings. Their purpose is to show the steps so you can repeat them with your own figures.
The set includes a single rental where deductions are usable, a furnished short-term rental where participation is the deciding issue, a small commercial building with site work, a catch-up through a method change, a sale that shows what recapture can do, a small property where a study is not worth it, and a case where passive limits suspend the deduction.
Read them in any order. If you are new, start with Hypothetical: A Single Rental With Usable Deductions. To see a case where the answer is no, read Hypothetical: When a Study Is Not Worth It. Then apply the same method to your own facts with the Cost Segregation Decision Checklist.