Cost Segregation in Myrtle Beach, SC: $15K-$50K Year 1
Myrtle Beach rental and STR investors save $15K-$50K in Year 1 with cost segregation + 100% bonus depreciation. See real savings by property type.
The Grand Strand draws over 20 million visitors annually — a tourism base that rivals any Florida market, with lower entry prices. SFRs and condos across Surfside Beach, Garden City, and Barefoot Landing run $250K–$800K, and furnished STRs commonly pull $40K+ in annual revenue. Cost segregation typically accelerates $20K–$50K into Year 1 at the 37% bracket plus South Carolina’s 6.5% state rate.
Myrtle Beach: 20 Million Visitors and Counting
The Grand Strand draws over 20 million visitors annually, making Myrtle Beach one of the most-visited destinations on the East Coast. The vacation rental market here is massive—from oceanfront condos along Ocean Boulevard to golf-course villas in Barefoot Landing and beach houses in Surfside Beach and Garden City. The median condo price in Horry County sits around $250,000, while single-family beach houses range from $350K to $800K depending on proximity to the ocean.
our Airbnb tax strategy guide →
If you own a Myrtle Beach vacation rental that generates $30,000-$80,000 in annual gross revenue, that’s taxable income. A cost segregation study accelerates a significant portion of your depreciation deductions into Year 1, reducing your tax bill on that rental income immediately.
Myrtle Beach Real Estate Market Snapshot Median Home Price
$325,000 Median Rental Property
$300,000 Avg STR Annual Revenue
$40,000 Property Tax Rate
0.57% State Income Tax
Up to 6.5% Construction Cost Index
Below Average
Affordable beach STR market, high volume. Top investment areas: North Myrtle Beach, Surfside Beach, Garden City, Pawleys Island.
Source: Public assessor data, Zillow, AirDNA estimates. Values are approximate metro-area medians.
South Carolina’s Favorable Tax Environment
South Carolina’s top marginal income tax rate is 6.4% (on income over $16,040). The state conforms to federal depreciation rules, including 100% bonus depreciation. Combined federal + state, an investor in the 37% bracket faces approximately 43.4%. That means every $100,000 in accelerated depreciation saves roughly $43,400 in combined taxes.
Oceanfront condo improvements—tile flooring, kitchen cabinetry, bathroom vanities, appliances, light fixtures, balcony railings—are all 5-year property eligible for 100% bonus depreciation. Even a $250K condo can generate $20K-$35K in accelerated Year 1 deductions.
A Real Example: Oceanfront 2BR Condo in North Myrtle Beach
The property: A 2-bedroom, 2-bathroom oceanfront condo in North Myrtle Beach (28582), purchased in May 2023 for $385,000. Built in 2008. Fully furnished as a vacation rental, generating $48,000/year in gross revenue. The owner is a corporate manager in Charlotte with W-2 income of $210,000.
Without cost segregation: Depreciable basis (after 10% land for condo) is $346,500. Straight-line: $12,600 per year.
With cost segregation:
| Category | Amount | Year 1 Deduction |
|---|---|---|
| 5-Year Property (furniture, appliances, cabinetry, flooring, fixtures, decor) | $72,800 | $72,800 (100% bonus) |
| 15-Year Property (balcony improvements, parking lot share, landscaping share) | $10,400 | $10,400 (100% bonus) |
| 27.5-Year Property (remaining condo structure) | $263,300 | $9,575 (straight-line) |
| Total Year 1 Accelerated Deductions | $83,200 |
At a 40% combined rate, that’s approximately $33,300 in estimated combined tax savings. The fully furnished vacation rental generates the highest reclassification percentage because all the furniture, kitchen equipment, and decor are 5-year property.
Myrtle Beach Area Investment Zones
North Myrtle Beach / Cherry Grove (28582): Oceanfront condos and beach houses. $250K-$600K. Strong summer rental income with growing shoulder-season demand.
Myrtle Beach Oceanfront (29577): High-rise condos from $200K-$450K. High density of vacation rentals with established management companies.
Surfside Beach / Garden City (29575, 29576): Family-oriented beach communities. Single-family beach houses $400K-$700K with pools, outdoor showers, and elevated decks—all reclassifiable.
Barefoot Landing / North Shore (29579): Golf-course condos and villas. $200K-$400K. Year-round golf tourism extends the rental season.
Pawleys Island / Litchfield (29585): Upscale end of the Grand Strand. Beach houses $500K-$1M+ with significant outdoor improvements.
100% Bonus Depreciation and Lookback
The OBBBA permanently restored 100% bonus depreciation. For Grand Strand investors who purchased in prior years, lookback studies via Form 3115 capture all missed accelerated depreciation in one year.
Related Reading
- Cost Segregation If You Plan to Sell Soon: Is It Still Worth It?
- Is Bonus Depreciation Permanent? What the OBBBA Means for 2025 and Beyond
- Your Savannah Historic District STR Has More Depreciable Components Than You Think
Myrtle Beach Investors: See Your Vacation Rental’s Depreciation Breakdown
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Getting Started
Provide your property details and we deliver a CPA-ready report in under an hour. Your CPA applies it to your federal and South Carolina state returns.
Myrtle Beach Real Estate Market: Why Cost Segregation Makes Sense Here
Myrtle Beach is one of the most accessible beach STR markets on the East Coast, with investor-grade condos and vacation homes typically priced in the $250K-$450K range — significantly below comparable resort markets like Hilton Head or the Outer Banks. The Grand Strand draws over 20 million visitors annually, supporting a massive vacation rental economy centered on oceanfront condos, golf course villas, and family-oriented beach houses. For many investors, Myrtle Beach represents the entry point into resort-market rental ownership.
South Carolina conforms to federal bonus depreciation and has a top income tax rate of just 6.4%. Myrtle Beach vacation condos are typically purchased fully furnished with kitchen equipment, linens, and beach gear — all of which classify as 5-year or 7-year property under MACRS. This heavy FF&E concentration means a furnished Myrtle Beach condo often has 25-30% of its depreciable basis eligible for immediate acceleration, producing Year 1 tax savings that can cover several months of mortgage payments.
how we classify building components →
Estimated Year 1 Savings for Myrtle Beach Properties
| Property Type | Price | Est. Year 1 Tax Savings |
|---|---|---|
| Myrtle Beach SFR | $350K | $15K-$23K |
| Myrtle Beach Airbnb/STR | $375K | $22K-$34K |
| Myrtle Beach Duplex | $425K | $19K-$28K |
| Myrtle Beach Condo | $275K | $10K-$15K |
Estimates assume 100% bonus depreciation at the 37% federal bracket. Actual savings depend on property condition, age, and furnishing level.
Who Orders Cost Segregation in Myrtle Beach?
Myrtle Beach cost segregation clients are predominantly condo owners who purchased oceanfront or second-row units as vacation rental investments. Many are from North Carolina, Virginia, and Ohio — states within a day’s drive of the Grand Strand — and they manage their units through property management companies like Vacasa or local firms. We also work with investors who own multiple condo units in the same building or resort complex and want to run studies across their entire portfolio in a single order.
Whether you own a $250K oceanfront condo in North Myrtle Beach or a $500K beach house in Surfside, a cost segregation study pays for itself many times over in Year 1 tax savings.
Also Serving Nearby Markets
We serve investors across South Carolina and nearby markets including Charleston, Hilton Head, and Outer Banks. See state-by-state tax rules →
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