Cost Segregation in Las Vegas, NV

America's #1 STR market meets zero state income tax — Las Vegas's 40M+ annual visitors, the Raiders, F1, and the Sphere drive unmatched short-term rental revenue, while no state income tax means every dollar of cost segregation savings stays in your pocket.

Population
2.3M
Median Home
$400K
Rent (3BR)
$2,000
Property Tax
0.54%
Annual Job Growth
40K+
Ranking
#1 STR Market
Overview

Value Props for Investors

ENTERTAINMENT CAPITAL
40M+ Visitors, F1, Raiders, Sphere

Las Vegas is a global entertainment destination. F1 Grand Prix, Allegiant Stadium, MSG Sphere, and world-class dining drive year-round STR demand — $210+ average nightly rates with 72%+ occupancy.

ZERO STATE TAX
No State Income Tax on Any Income

Nevada's zero state income tax means 100% of your rental income AND cost seg savings are free from state tax. No addback rules, no conformity issues, no state returns to file.

LOW COST TO HOLD
0.54% Property Tax + $1,400/yr Insurance

Las Vegas has some of the lowest holding costs for any major metro. On a $400K property, annual tax and insurance is just ~$3,560, compared to $8K-$12K in Texas or Ohio. This directly boosts net cash flow.

Tax Strategy

Cost Segregation & Tax Rules in Las Vegas, NV

Understanding how federal and Nevada state tax rules interact is critical to maximizing your cost segregation benefits in Las Vegas.

Cost Seg Overview
State vs. Federal Rules
Tax Landscape
Typical Purchase
$400,000
Building Value
75%
25% land / 75% building
Cost Seg Range
25-38%
of building reclassified
Home Age
20 yrs
Built ~2004
What Gets Reclassified

A cost segregation study identifies building components that can be depreciated over 5, 7, or 15 years instead of the standard 27.5 or 39 years. In Las Vegas, typical reclassification rates are 25-38% of building value.

Purchase Price Breakdown
Building 75%$300,000
Land 25%$100,000
Building Value Reallocation (with Cost Seg)
5-Year Property18%
$54,000
15-Year Property12%
$36,000
27.5 / 39-Year (Remaining)70%
$210,000

5 & 15-year components ($90,000 = 30% of building) are eligible for bonus depreciation in Year 1.

Overline Study Cost & ROI
Overline Study Cost
$499 - $2,000
Avg. ROI
10-40x

The math: A $400,000 property with 75% building value and 30% reclassification yields ~$33,300 in Year 1 federal tax savings at the 37% bracket — significantly more ROI than traditional studies costing $5,000-$10,000+.

Housing Stock Advantage

With a median build year of 2004, Las Vegas's housing stock has identifiable components (HVAC, electrical, plumbing, landscaping) that are strong candidates for accelerated depreciation.

N/A — No State Income Tax
Nevada Bonus Depreciation Conformity

Nevada has no state income tax, so bonus depreciation conformity does not apply. All cost segregation benefits are realized on your federal return only.

What This Means for Las Vegas Investors: With no state income tax, Nevada investors receive the cleanest cost seg benefit — 100% federal bonus depreciation with zero state-level complexity. No addback calculations, no conformity issues.

Federal vs. NV Depreciation Timeline
PeriodFederal TreatmentNV State Treatment
Year 1100% bonus depreciationN/A — No state income tax
Years 2+Standard MACRS schedulesN/A — No state income tax
Section 179 Expensing
State ConformityLimited

Section 179 deductions are federal-only in Nevada due to the state's zero income tax. NV's STR-heavy market means investors often have significant personal property (furniture, fixtures) that qualifies for Section 179 beyond the standard cost seg components.

Key Takeaway

A $420K property with a $311K depreciable basis and 30% cost seg reclassification yields ~$34.5K in federal tax savings in Year 1 — and with no state income tax, that's your total savings with zero complexity.

Bottom Line

Nevada's zero state income tax means your federal cost seg savings are your total savings — and you keep 100% of all rental income without state tax drag. The simplicity is a major advantage for portfolio investors.

Local Property Tax
0.54%
Las Vegas effective rate
Transfer Tax
$1.95 per $500 of value in Clark County; $1.30 per $500 in other counties
State Income Tax
None
No State Income Tax
Property Tax Details

Clark County effective rate of ~0.54% is among the lowest for any metro over 2M. Nevada's 8% annual tax cap protects against sudden increases.

Assessment Methodology
MethodTaxable value at 35% of replacement cost less depreciation
Reassessment CycleAnnually
Assessment BodyCounty Assessor
Appeal WindowJanuary 15 for the current tax year
Appeal Success Likelihood
Moderate
LowModerateGoodVery High

Nevada's unique cost-based approach (replacement cost minus depreciation) differs from market value methods. This creates appeal opportunities when replacement costs are inflated. The 3% annual cap on property tax increases (AB 489) provides strong protection for investors.

Work with Overline — Our team helps Las Vegas investors identify over-assessed properties and file tax appeals. A successful appeal can save thousands annually and compounds your cost seg savings.

Illustrative Example

Cost Seg Example for Las Vegas, NV

This example assumes a purchase eligible for 100% bonus depreciation. All factors below are based on averages from our historical cost segregation studies for NV properties. To see your exact savings, run a property-specific cost seg analysis below.

Typical Las Vegas, NV Property Details
$
50%95%
5%35%
2%25%
Total Reclassified30% of building
10%37%
Estimated Year 1 Tax Savings
Building Value$300,000
$400,000 x 75%
Normal Annual Depreciation$10,909
$300,000 ÷ 27.5 yr (residential)
5-Year Reclassified$54,000
15-Year Reclassified$36,000
Total Accelerated$90,000
30% of $300,000 building value
Federal Tax Savings (Year 1)$33,300
$90,000 x 37% bracket
Total Year 1 Tax Savings$33,300
8.3x normal annual deduction captured in Year 1

NV State Tax: With no state income tax, Nevada investors receive the cleanest cost seg benefit — 100% federal bonus depreciation with zero state-level complexity. No addback calculations, no conformity issues.

Insurance & Risk

Insurance Landscape in Las Vegas

Insurance costs directly impact your cash flow. Understanding Las Vegas's risk profile helps you budget accurately and avoid coverage gaps.

Avg. Annual Premium
$1,400
Las Vegas average
State Average
$1,500
35% below average
National Average
$2,300
for comparison
Key Risk Drivers
1
Flash flooding from monsoon storms
2
Extreme heat damage to HVAC and roofing
3
Dust and sand damage to exteriors
Coverage Recommendations
Standard homeowner's policy with replacement cost coverage
Extended HVAC coverage given extreme heat stress
Flood insurance for properties near washes or flood channels
Umbrella liability policy ($1M+) for rental properties, especially STRs
Cost Seg + Insurance Connection

Nevada's low insurance costs are a major cash-flow advantage. A cost seg study documents HVAC, pool, and hardscaping components that face extreme desert conditions — ensuring accurate replacement cost estimates.

Revenue Comparison

STR vs. Long-Term Rental in Las Vegas

Compare short-term (Airbnb) and long-term rental income for a typical Las Vegas investment property.

Long-Term Rental
Monthly Rent (3BR)$2,000
Annual Gross$24,000
Vacancy Rate5%
Net Annual$22,800
Tenant StabilityHospitality, healthcare, and construction workers provide solid LTR demand
Depreciation Schedule27.5 years
Residential rental property
Tax TreatmentPassive Only
Losses can only offset passive income unless you qualify as a Real Estate Professional (750+ hrs/yr)
Short-Term Rental
Avg. Nightly Rate$210
Occupancy Rate72%
Annual Gross Revenue$55,188
Net Annual (after expenses)$41,391
ManagementSelf or 20-25% PM fee
Depreciation Schedule39 years
Classified as commercial / transient use property
Tax TreatmentActive Income Eligible
Losses can offset W-2 / active income if you document 100+ hrs of material participation and meet IRS criteria
Cost Seg + STR Loophole

Las Vegas is where the STR + cost seg strategy reaches its full potential. Material participation triggers the RE professional loophole, allowing $33K+ in Year 1 deductions while grossing $55K+ from one of the strongest STR markets. Zero state tax makes the math even cleaner.

Market Fundamentals

Economy & Housing Demand in Las Vegas

Strong economic engines create stable rental demand. Here is what drives Las Vegas's economy and housing market.

Median Income
$65,000
Rent-to-Income
30%
Healthy ratio
Vacancy Rate
4.8%
Pop. Growth
+1.8% annually
Major Employers
1
MGM Resorts (55K+)
2
Caesars Entertainment (30K+)
3
Wynn Resorts (15K+)
4
Las Vegas Sands (10K+)
5
Station Casinos (12K+)
6
HCA Healthcare (5K+)
Top Industries
Tourism & Hospitality
Gaming & Entertainment
Healthcare
Construction
Logistics
Landlord & STR Rules
Landlord Friendliness
Friendly
Eviction Timeline
30-45 days
STR Regulation
Permitted with permit — varies by jurisdiction

Clark County requires a short-term rental permit with distance requirements in some zones. The City of Las Vegas has its own permit process. Henderson is more permissive. Research jurisdiction before purchasing.

Why Invest Here

Las Vegas is the undisputed STR capital of America. 40M+ annual visitors, the Raiders, F1, Sphere — demand drivers are unmatched. At $400K median prices with zero state income tax and 0.54% property tax, the economics are compelling for both LTR and STR strategies.

Where to Invest

Top Neighborhoods in Las Vegas

#1
Henderson (Green Valley / Anthem)
Upscale master-planned suburb with top schools
Price
$450K
Rent
$2,200
Yield
5.9%
Consistently ranked among America's safest cities. Premium rents, low vacancy, and more permissive STR rules than unincorporated Clark County.
$450K$2,2005.9%
Consistently ranked among America's safest cities. Premium rents, low vacancy, and more permissive STR rules than unincorporated Clark County.
Consistently ranked among America's safest cities. Premium rents, low vacancy, and more permissive STR rules than unincorporated Clark County.
#2
Summerlin
Affluent western suburb with Red Rock views and corporate offices
Price
$525K
Rent
$2,500
Yield
5.7%
Las Vegas's premium submarket. Corporate offices, top schools, and Red Rock Canyon attract high-income tenants. Strongest appreciation in the valley.
$525K$2,5005.7%
Las Vegas's premium submarket. Corporate offices, top schools, and Red Rock Canyon attract high-income tenants. Strongest appreciation in the valley.
Las Vegas's premium submarket. Corporate offices, top schools, and Red Rock Canyon attract high-income tenants. Strongest appreciation in the valley.
#3
Southwest Las Vegas
Rapidly growing corridor with new construction and value pricing
Price
$380K
Rent
$1,950
Yield
6.2%
Fastest-growing area with 10-15% below Henderson/Summerlin prices. Newer construction maximizes cost seg reclassification.
$380K$1,9506.2%
Fastest-growing area with 10-15% below Henderson/Summerlin prices. Newer construction maximizes cost seg reclassification.
Fastest-growing area with 10-15% below Henderson/Summerlin prices. Newer construction maximizes cost seg reclassification.
#4
North Las Vegas
Most affordable entry with industrial growth and Nellis AFB
Price
$350K
Rent
$1,800
Yield
6.2%
Best cash-flow economics in the valley. Nellis AFB and Amazon/logistics drive consistent demand. Sub-$350K allows rapid portfolio scaling.
$350K$1,8006.2%
Best cash-flow economics in the valley. Nellis AFB and Amazon/logistics drive consistent demand. Sub-$350K allows rapid portfolio scaling.
Best cash-flow economics in the valley. Nellis AFB and Amazon/logistics drive consistent demand. Sub-$350K allows rapid portfolio scaling.
#5
Strip Corridor (Paradise / Winchester)
Tourist epicenter with maximum STR revenue potential
Price
$380K
Rent
$1,900
Yield
6.0%
Properties near the Strip command highest STR rates — $200-$300/night during F1, CES, and boxing. Higher land values but STR revenue can exceed $55K+ annually.
$380K$1,9006.0%
Properties near the Strip command highest STR rates — $200-$300/night during F1, CES, and boxing. Higher land values but STR revenue can exceed $55K+ annually.
Properties near the Strip command highest STR rates — $200-$300/night during F1, CES, and boxing. Higher land values but STR revenue can exceed $55K+ annually.
Local Partners

Investor-Friendly Partners in Las Vegas, NV

We are building a curated directory of top investor-friendly brokers, property management companies, and service providers in Las Vegas, NV.

Investor-Friendly Brokers

Top real estate agents who specialize in investment properties and understand cost segregation, 1031 exchanges, and cash-flow analysis.

Coming Soon
Property Management

Vetted property managers who handle tenant screening, maintenance, and rent collection for both long-term and short-term rentals.

Coming Soon
Insurance Agents

Independent insurance agents who specialize in rental property coverage and can leverage cost seg data for accurate replacement cost estimates.

Coming Soon

Are you a broker, property manager, or insurance agent serving investors in Las Vegas, NV?

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Frequently Asked Questions

Cost Segregation FAQ — Las Vegas, NV

How much can I save with cost segregation in Las Vegas, NV?

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On a typical $400K property in Las Vegas, cost segregation can yield approximately $33,300 in Year 1 combined federal and state tax savings at the 37% bracket, with a study ROI of 605%. Overline studies cost $499-$2,000.

What is the property tax rate in Las Vegas?

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The effective property tax rate in Las Vegas is approximately 0.54%. Clark County effective rate of ~0.54% is among the lowest for any metro over 2M. Nevada's 8% annual tax cap protects against sudden increases.

Is Las Vegas a good market for real estate investing?

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Las Vegas is the undisputed STR capital of America. 40M+ annual visitors, the Raiders, F1, Sphere — demand drivers are unmatched. At $400K median prices with zero state income tax and 0.54% property tax, the economics are compelling for both LTR and STR strategies.

What is the average insurance cost for rental properties in Las Vegas?

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The average annual homeowner insurance premium in Las Vegas is approximately $1,400. Las Vegas enjoys very low insurance costs — 39% below national average. No hurricane, wildfire, or earthquake risk in the Las Vegas Valley.

What are the STR and landlord rules in Las Vegas?

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Las Vegas is rated "Friendly" for landlords. STR regulation: Permitted with permit — varies by jurisdiction. Eviction timeline: 30-45 days. Clark County requires a short-term rental permit with distance requirements in some zones. The City of Las Vegas has its own permit process. Henderson is more permissive. Research jurisdiction before purchasing.

Who are the major employers in Las Vegas?

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Major employers in Las Vegas include MGM Resorts (55K+), Caesars Entertainment (30K+), Wynn Resorts (15K+), Las Vegas Sands (10K+), Station Casinos (12K+). Top industries: Tourism & Hospitality, Gaming & Entertainment, Healthcare, Construction, Logistics.

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