Maximizing Airbnb Cash Flow in Sevierville, TN with Cost Segregation

Why Sevierville Airbnb Owners Should Use Cost Segregation in 2026

If you’re an Airbnb investor in Sevierville, TN, finding ways to maximize your return on investment is essential. One powerful strategy that many short-term rental owners overlook is cost segregation for Airbnb properties—a tax planning tool that allows property owners to accelerate depreciation and reduce taxable income. Shawn Wilmoth, a CCIM-certified commercial and residential realtor with United Real Estate Solutions, explains how this strategy can help Airbnb investors increase profits in the Sevierville market.

Who is Shawn Wilmoth?
Shawn Wilmoth is a trusted real estate expert in Sevierville, TN, specializing in both commercial and residential properties. As a CCIM-certified professional, he brings advanced expertise in investment analysis, property valuation, and strategic planning for real estate investors. Shawn has helped numerous property owners in the Sevierville area maximize their rental income, including short-term rental and Airbnb investors looking to make the most of their investment properties.

Understanding Cost Segregation for Airbnb Rentals
Cost segregation is a real estate tax strategy that involves separating personal property components of an investment property from the building itself. While standard depreciation spreads the cost of a residential property over 27.5 years, cost segregation allows certain elements—like furniture, appliances, flooring, lighting, and landscaping—to depreciate over shorter periods, typically 5, 7, or 15 years.

For Airbnb rentals in Sevierville, cost segregation can be especially beneficial. Short-term rental properties often include upgraded finishes, modern appliances, and furnishings designed to attract guests. By accelerating depreciation on these assets, property owners can significantly reduce taxable income in the early years, improving cash flow and allowing for reinvestment in property upgrades or additional Airbnb units.

Steps to Implement Cost Segregation in Sevierville

1. Hire a Cost Segregation Specialist: Engage a professional who can perform a detailed engineering-based study of your Airbnb property.

2. Identify Qualifying Assets: Determine which property components qualify for accelerated depreciation, including furniture, fixtures, appliances, and landscaping.

3. Work with Your Accountant: Apply the depreciation schedule to your tax filings to capture the maximum benefit from this strategy.

Shawn Wilmoth emphasizes that combining strategic real estate investments with cost segregation can dramatically increase the profitability of Airbnb rentals in Sevierville. Investors can reduce their upfront tax burden, increase cash flow, and make their properties more competitive in the growing short-term rental market.

Whether you’re starting your first Airbnb investment in Sevierville, TN or optimizing an existing property portfolio, consulting a CCIM-certified realtor like Shawn Wilmoth ensures informed decisions and maximized returns. Using cost segregation for your Airbnb property is a smart step toward financial growth and long-term success in the short-term rental market.