RV Park Cost Segregation: Site Assets, Guest Stays and Loss Limits
By AE Tax Advisors · Published 2026-08-10 · Updated November 8, 2026.
An RV park can contain substantial depreciable improvements, but neither the property type nor a short-stay business model guarantees a fixed deduction. Establish asset ownership, land allocation and the actual operating facts before relying on a cost segregation estimate.
Reconcile what was purchased
Separate land, buildings, improvements, equipment and any business intangibles. Collect the closing allocation, site plans, construction records and fixed-asset schedule. For leased equipment or a separately operated business, identify which taxpayer owns the relevant assets.
Map the site systems
Inventory roads, pads, drainage, water and sewer systems, electrical distribution, hookups, lighting and amenities. Provide cost and function detail for each system. A pedestal, buried line, building connection and utility asset should not all be classified from one label.
Cabins, offices, bathhouses, laundries and recreation structures require their own analysis. So do vehicles, laundry machinery, network equipment and other personal property. Land and some land-related costs may be nondepreciable.
Use actual guest-stay records
The average customer-use period can affect whether the activity is treated as a rental under the passive rules. Use reservation data and the applicable computation. Seasonal, monthly and mixed-stay parks cannot assume the seven-day exception simply because they are called campgrounds.
If a rental exception applies, the owner's participation still must be tested. More than 100 hours alone is not enough for Test 3; the owner must also participate at least as much as any other individual. Other tests have their own conditions.
Apply the remaining loss limits
Review basis, at-risk amounts, passive status and excess-business-loss limits. A nonpassive classification does not establish that a multimillion-dollar first-year loss is currently deductible against wages.
Track expansions separately
New sites and replacement systems have their own costs and service dates. Determine capitalization, recovery periods and bonus eligibility rather than treating every expansion payment as an immediate deduction. Records of retired components may also matter.
Model the exit by asset
Recapture depends on classification and depreciation history. Do not assume every land improvement uses straight-line depreciation or receives a single capital-gain rate. A sale allocation, installment arrangement or real-property exchange requires separate review.
Book a Cost Seg Discovery Call with the site map, stay records, management arrangement, fixed-asset schedule and acquisition documents.
Frequently Asked Questions
Does a campground automatically qualify for nonpassive losses?
No. Use actual customer-stay and participation facts, then apply the other loss limits.
Are all pads and utilities automatically 15-year property?
No. Classify each asset using its function, ownership and applicable asset-class rules.
Sources and review notes
Reviewed November 8, 2026 by AE Tax Advisors. Examples are illustrative; apply the rules to the relevant tax year and records. See our editorial policy.