What is the 10 year rule at RV parks?
The "10-year rule" at RV parks typically refers to policies where parks require RVs older than 10 years to meet specific condition, appearance, or model-year standards before being admitted or allowed to remain. From a tax and depreciation standpoint, this is unrelated but as a property owner, it affects occupancy and asset valuation, both of which factor into your cost segregation study and depreciation calculations.
What is the average expense ratio for an RV park?
RV park expense ratios typically range from 30% to 50% of gross revenue, depending on amenities, staffing, and utilities. Owners with higher expense ratios especially benefit from cost segregation, since accelerating depreciation on infrastructure — paved sites, electrical hookups, recreational buildings directly reduces taxable income and improves net cash flow without changing operations.
What RV park assets qualify for accelerated depreciation?
Many RV park components qualify for 5, 7, or 15-year depreciation instead of the standard 39 years. Common examples include electrical hookup pedestals, water and sewer utility connections, paved RV pads and driveways, fencing, signage, landscaping improvements, recreational structures, laundry facilities, pool equipment, and exterior lighting. A proper engineering study identifies and documents every qualifying component.
How much can an RV park owner save with cost segregation?
Savings depend on your park's depreciable basis, size, and asset mix. Seneca's clients achieve an average first-year deduction of $171,243. For an RV park with a $2M depreciable basis, it's common to reclassify 20%–40% of costs into accelerated categories, potentially generating $75,000–$200,000 in first-year tax savings. A free preliminary analysis gives you a personalized estimate before any commitment.
Can I do a cost segregation study on an RV park I purchased years ago?
Yes. A lookback cost segregation study allows you to capture all missed depreciation deductions from the past up to 15 years in a single tax year using IRS Form 3115. You do not need to amend prior returns. This is one of the most powerful tools for RV park owners who acquired their property without an initial cost segregation study.
How long does a cost segregation study take for an RV park?
Most RV park cost segregation studies are completed within 2–4 weeks, significantly faster than the industry standard of 4–8 weeks. If you opt for a virtual property tour instead of an on-site visit, turnaround can be as fast as 2–3 weeks. Rush service is available for clients with pressing tax deadlines, delivering results in as little as one week.
Does cost segregation trigger a tax audit for RV park owners?
Engineering-based cost segregation is a well-established, IRS-recognized tax strategy. When performed correctly with proper documentation, it carries a low audit risk. Seneca's studies are built on strict IRS-compliant engineering methodology and include AuditDefense at no additional charge, meaning if the IRS ever inquires, our team responds and defends your report for as long as you own the property.
What does a cost segregation study cost for an RV park, and what's the ROI?
Study fees for RV parks typically range from $10,000 to $30,000 depending on property size and complexity. However, the ROI frequently exceeds 10:1, meaning for every dollar spent, $10–$25 is returned in tax savings. A free preliminary analysis is available before any commitment, so you can verify the study is cost-effective for your specific property before proceeding.