There's Still Time to Buy a San Diego Airbnb in 2026. Here's the Year-End Math.

Most buyers take the holidays off. That's exactly why the last two months of the year are one of my favorite times to buy a short-term rental in San Diego.

I'm not saying that as a theory. My partner Joe and I own and run The Carmine Collection, including Kirra Villa, which Condé Nast Traveler has named one of the best Airbnbs in San Diego four years running. I buy these properties for myself and for clients, and the year-end window keeps paying off. Here's why 2026 is no exception.

1. The tax deadline is December 31, and it's about "placed in service," not "purchased"

The One Big Beautiful Bill Act made 100% bonus depreciation permanent for qualifying property acquired after January 19, 2025. Pair that with a cost segregation study and a short-term rental can generate a large first-year deduction.

The catch is timing. To claim it on your 2026 return, the property has to be placed in service by December 31, meaning ready and available for guests to book.

Think of it like a flight. Owning the ticket isn't enough. You have to be on the plane when the door closes. Closing on December 30 with an empty house doesn't get you there. Closing in early December with a furnished, listed property does.

2. The STR "loophole" is what makes the deduction usable

Normally, rental losses are passive and can't offset your W-2 or business income. Short-term rentals can be different. When the average guest stay is seven days or less and you materially participate in running the property, the IRS doesn't treat it as a passive rental activity.

That's how a high earner can use first-year depreciation to offset ordinary income. A rough illustration:

Every situation is different, and material participation has real hour and record-keeping requirements. One more San Diego note: California doesn't follow federal bonus depreciation, so this is a federal benefit. Talk to a CPA who specializes in short-term rentals before you buy, not after. I go deeper on this in my post on cost segregation for San Diego short-term rentals.

3. City of San Diego Tier 3 licenses are still available, but not forever

Inside the City of San Diego, a whole-home short-term rental needs a Tier 3 license, and those are capped at 1% of the city's housing units. As of mid-August 2026, the city reported 829 Tier 3 licenses still available.

Mission Beach is a different story. Tier 4 licenses there are fully issued and the waitlist application period is closed.

A few rules every buyer should know before writing an offer:

• Licenses don't transfer. Buying a home that's currently an Airbnb doesn't give you its license. You apply in your own name.
• One host, one license. A host can hold only one license and operate one unit at a time within the City of San Diego.
• Use it or lose it. Tier 3 and Tier 4 licenses must be used at least 90 days a year to keep them.

I treat these rules as a protective framework, not just a barrier. A capped market means less competition for the licenses that exist. That's part of why well-run San Diego STRs hold their value.

4. Year-end sellers negotiate differently

Rates are the headline. Freddie Mac's 30-year average was 7.32% on October 22, 2026, up from 6.19% a year earlier. Higher rates thin out the buyer pool, and the holidays thin it out again.

Sellers who still have homes listed in November and December usually want to be done. That's when you can ask for a seller credit instead of a price cut. A credit can buy down your rate or cover furnishing costs, and on an STR, furnishing is what gets you placed in service on time.

5. The timeline is tight, so start now

Working backward from December 31:

1. Early November: Get pre-approved with a lender who understands STR income. Shortlist properties with allure. Guests book a feeling, not a floor plan.
2. Mid November: Write offers with a short escrow and fast contingencies.
3. Early December: Close. Apply for your license. Furnish, style and photograph.
4. By December 31: Listed and bookable on Airbnb and VRBO.

A turnkey or already-furnished property makes this far easier. So does more sleeping capacity, which generally means more revenue.

How I help

My Airbnb buyer service runs end to end: finding the right property, running the numbers, styling and furnishing, launching on the booking platforms, then handing it off for you to self-manage or to a property manager.

If you want a 2026 tax year purchase, the window is open but closing. Call or text me at 760.704.3820 or email [email protected] and we'll map out whether a December close works for you.

This post is for general information only and isn't tax or legal advice. Consult a qualified CPA about your situation.