By Nazreen Kashani | October 12, 2026
If you found this post through my Instagram video about A-Frame Club and year-end bonus depreciation, you’re probably wondering: could purchasing an A-Frame Club cabin before year-end really create a six-figure tax deduction?
For a qualifying buyer, it may be possible. A cost segregation study is available for review, and the developer is allowing owners to self-manage through December 31, 2026. Together, those create an opportunity worth discussing with your CPA—especially if you’re exploring ways to potentially offset W-2 income.
The amount you can deduct, and whether you can use that deduction against your other income, are separate questions. Both need to be evaluated before you buy.
Why the year end self management window matters
A-Frame Club operates as a boutique hotel in Old Town Winter Park. The developer is permitting owners to self-manage their cabins through December 31, 2026, with professional onsite management expected to begin in 2027.
That temporary window gives buyers an opportunity to participate directly in their rental operations. For certain short-term rentals, meeting material participation requirements can allow losses to be treated as nonpassive and potentially offset wages.
Simply choosing to self-manage does not establish eligibility. Your actual work, guest stays, personal use, and tax circumstances matter. There must also be enough time before year-end to meet the applicable requirements.
How cost segregation and bonus depreciation work
Depreciation allows owners to recover the cost of eligible income-producing property over time. A cost segregation study identifies components that can be depreciated over shorter periods than the building itself.
Under current federal rules, eligible property acquired and placed in service after January 19, 2025, generally qualifies for 100% bonus depreciation. That can accelerate deductions for qualifying shorter-life assets identified in a study. It does not mean you can deduct the entire cabin purchase price.
We have a cost segregation study available to share with your tax advisor. Your CPA should determine how it applies to the cabin you purchase, your purchase basis, and your rental use.
Could this create a six figure deduction
Potentially—but a six-figure deduction is not a guaranteed result for every cabin or buyer.
Your CPA will need to review the study and calculate your eligible deductions. A deduction reduces taxable income; it is not a dollar-for-dollar reduction in your tax bill. The actual savings depend on your tax rate and whether the deduction is currently usable.
Can the losses offset W 2 income
For qualifying buyers, they potentially can.
One important short-term rental exception applies when average guest stays are seven days or less. When that exception applies and the owner meets a material participation test, the activity may be nonpassive. Losses may then offset W-2 income, subject to other limitations.
Personal-use days, participation by cleaners or other service providers, and loss limitations can affect the outcome. Ask your CPA to evaluate your intended use and management plan before closing—not after tax season arrives.
What needs to happen before December 31
To pursue a 2026 deduction, purchasing the cabin is only part of the process. It also needs to be placed in service as a rental by December 31, 2026—generally meaning ready and available for rental use.
Before committing, work with your advisor to:
- Review the cost segregation study and ownership documents.
- Estimate the deduction and whether it can offset your income.
- Establish a rental and participation plan, including appropriate records.
- Confirm closing and rental readiness before year-end.
- Evaluate personal use, the 2027 management transition, and potential depreciation recapture when you sell.
December 31 is the deadline for this developer’s current self-management window and for placing eligible assets in service for a calendar-year 2026 deduction. It is not a general expiration date for federal bonus depreciation.
Explore the A Frame Club cabins
The appeal goes beyond tax planning. A-Frame Club brings together cedar cabins among the pines along the Fraser River, Malm fireplaces, Noguchi lighting, and a restored historic saloon. The planned spa adds another reason to picture yourself spending more time here.
Professional onsite management is expected to bring a convenient second-home experience beginning in 2027. For the remainder of 2026, eligible buyers have an opportunity to explore self-management and its potential tax implications.
Explore these two cabins:
Contact me to schedule a tour, request the cost segregation study, or discuss the ownership and management details. I can also connect you with a CPA to evaluate the opportunity alongside your own tax advisor.
This article provides general information, not tax, legal, or investment advice. Tax benefits are not guaranteed. Eligibility and deduction amounts depend on the property, purchase basis, rental activity, personal use, material participation, and applicable limitations. Consult your tax advisor before purchasing. Confirm current listing availability and management terms.