Stage 11 of 12. See the full curriculum and choose your starting stage
The decision to make
Link each purchase to the property, room and installed item. Preserve invoices, payment records, freight, installation detail, refunds and substitutions. Keep acquired furnishings, later purchases and renovation work distinguishable in the record. Ask contractors for a useful description of the work and where it was performed. Do not assign tax classifications based on a designer’s label or assume a whole furnishing package receives one treatment.
How to carry it out
Prepare a chronology showing acquisition, work, readiness for rental use and later changes, supported by the actual records. Keep removed and replaced components traceable where relevant. A cost segregation provider evaluates property components and evidence; the tax preparer evaluates the return treatment and taxpayer facts. Confirm engagement responsibilities before treating an estimate as an implemented result.
Worked planning example
Illustrative scenario; not a client case or performance result.
A hypothetical renovation invoice combines cabinets, appliances and painting. The owner requests a clearer vendor breakdown, retains the original invoice and adds room-level photos. The owner does not invent allocation percentages to fill the gaps. The study provider and preparer can then identify what further evidence is needed.
Decision gate: evidence before moving on
Complete the handoff when invoices reconcile to payments and inventory, open allocation questions are labeled, and the tax preparer has confirmed what additional information is needed. This chapter organizes records and does not determine deduction eligibility.
Build the working record
Use one record per property and decision. Replace the prompts with verified information, retain the source documents and mark anything that still requires confirmation. Assign a person and a date to open questions instead of leaving them buried in conversation.
| Field | Your property evidence | Owner / next action |
|---|---|---|
| Property and item or work identifier | [Record verified facts or mark unresolved] | [Name and date] |
| Invoice, payment and credit references | [Record verified facts or mark unresolved] | [Name and date] |
| Acquisition versus later purchase | [Record verified facts or mark unresolved] | [Name and date] |
| Room and supporting photos | [Record verified facts or mark unresolved] | [Name and date] |
| Work and readiness chronology | [Record verified facts or mark unresolved] | [Name and date] |
| Open allocation question | [Record verified facts or mark unresolved] | [Name and date] |
| Study provider and return-preparer responsibilities | [Record verified facts or mark unresolved] | [Name and date] |
Download the blank CSV worksheet
Use the record with your project team
Start with the current approved revision. Send the same document to the owner, designer and local coordinator so each person can see which decisions are settled. Keep quotes and manufacturer information attached to the relevant line. When a decision changes, record what changed, why it changed and which downstream documents must be updated.
At the next review, compare the installed or contracted result with the recorded requirement. Close an item only when the required evidence exists. If the record describes a planned purchase, do not relabel it as installed inventory until receiving and site checks confirm it. If the property is already operating, schedule work around the actual calendar and communicate the affected rooms and amenities to the person responsible for listing accuracy.
Go deeper
Explore the related detailed design library · Use the free host planning tools · Compare design and furnishing providers
Coordinate design records with the tax team
For tax strategy, speak with AE Tax Advisors. For property-component evidence and a study preparation checklist, visit Stratum Cost Segregation’s STR resources. AE considers the broader tax strategy; Stratum focuses on property analysis. These are related business resources recommended by MyBnBDesign. Confirm separate engagement scope and fees. Design selections do not establish tax treatment or a promised deduction.
Continue through the roadmap
- Previous: Install, test and photograph the real property
- Next: Review the operating property and plan refreshes
Plan your rental with a clear brief
Bring your room measurements, priorities, and project questions to a conversation about your property.
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