Sauna Depreciation Schedules: How Saunas Are Written Off

If you’re adding a sauna to a home, short-term rental, or commercial property, one important question often comes up:

Can you depreciate a sauna—and if so, how?

The answer is yes, in many cases, but the depreciation schedule depends on:

• Where the sauna is installed

• How it’s used

• Whether it’s considered personal or business property

• How it’s attached to the structure

This guide breaks down:

• How saunas are classified for tax purposes

• Common depreciation schedules

• Residential vs rental vs commercial rules

• Bonus depreciation and cost segregation considerations

• What documentation you should keep

Important: This article is educational only and not tax advice. Always consult your CPA or tax professional before filing.

Can You Depreciate a Sauna?

The Short Answer

Yes—if the sauna is used for business or income-producing purposes.

Saunas used in:

• Short-term rentals (Airbnb / VRBO)

• Long-term rentals

• Commercial properties (gyms, spas, hotels)

• Medical or wellness businesses

…are often depreciable assets.

Saunas used solely for personal use in a primary residence are not depreciable.

How the IRS Classifies Saunas

For depreciation, the IRS generally looks at whether the sauna is:

• A structural component of the building, or

• Personal property / equipment

This classification determines the depreciation timeline.

Sauna Depreciation Schedules (Most Common Scenarios)

1. Sauna Installed in a Short-Term Rental or Investment Property

This is the most common case.

Depending on installation method, a sauna may be treated as:

A. 5-Year Property (Personal Property / Equipment)

Often applies when the sauna is:

• A pre-built kit

• Freestanding or modular

• Easily removable

• Not permanently framed into the structure

Many infrared saunas and modular indoor kits fall into this category.

Depreciation method:

• MACRS

• 5-year recovery period

• Eligible for bonus depreciation in many cases

Explore modular options in our Infrared Saunas collection.

B. 15-Year Property (Qualified Improvement / Land Improvements)

Applies when the sauna is:

• Semi-permanent

• Installed as part of a room upgrade

• Not fully structural but more integrated

This is less common but possible depending on installation details.

C. 27.5-Year Property (Residential Rental – Structural Component)

Applies when the sauna is:

• Custom-built

• Framed into the house

• Wired and finished as part of the structure

• Considered a permanent improvement

In this case, the sauna is depreciated along with the residential rental building.

2. Sauna in a Commercial Property

Commercial saunas may be depreciated as:

• 5-year property (equipment)

• 15-year property (improvements)

• 39-year property (structural component)

Many commercial electric and infrared saunas qualify for accelerated depreciation when classified as equipment.

3. Sauna in a Primary Residence (Personal Use)

• Not depreciable

• May increase basis for capital gains purposes

• May affect resale value

If a portion of the home is used as a business (home office, wellness practice), partial depreciation may be possible—consult a CPA.

Bonus Depreciation & Section 179 (Important for Investors)

Bonus Depreciation

In many tax years, qualifying equipment:

• Can be depreciated faster

• May allow a large portion of the cost to be deducted upfront

Modular saunas classified as 5-year property are often eligible.

Section 179

In some business scenarios:

• Saunas used in active businesses may qualify

• Limits and eligibility vary by year

This is especially relevant for:

• Wellness studios

• Gyms

• Medical practices

• Recovery centers

Cost Segregation: Advanced Strategy

For higher-value properties, a cost segregation study may:

• Break sauna components into faster-depreciating categories

• Accelerate tax benefits

• Improve early-year cash flow

This is most common in:

• Luxury short-term rentals

• Boutique hotels

• Wellness-focused commercial properties

What Affects How Your Sauna Is Depreciated?

Key factors include:

• Whether the sauna is removable

• Whether it’s framed into the structure

• Electrical permanence

• Local building classification

• How the property is used (personal vs income)

Keeping the sauna modular often provides more favorable depreciation treatment.

Documentation You Should Keep

To support depreciation claims, keep:

• Purchase invoices

• Installation invoices

• Electrical permits

• Photos of installation

• Manufacturer specifications

• Proof of business use

This documentation is critical in case of audit.

Indoor vs Outdoor Sauna Depreciation

Indoor Saunas

• Often classified as equipment if modular

• More likely to qualify for shorter depreciation schedules

Browse options in our Indoor Saunas collection.

Outdoor Saunas

• May be treated as accessory structures

• Depreciation varies based on permanence

• Often depreciated over longer periods if built on permanent foundations

See examples in our Outdoor Saunas collection.

Common Depreciation Mistakes to Avoid

• Depreciating personal-use saunas

• Misclassifying custom-built saunas as equipment

• Skipping documentation

• Not consulting a tax professional

• Ignoring bonus depreciation opportunities

Most depreciation errors are classification errors.

Example: Short-Term Rental Sauna Depreciation

Scenario:

• Modular infrared sauna

• Installed in an Airbnb

• Cost: $6,000

Possible treatment:

• 5-year MACRS property

• Eligible for bonus depreciation

• Large portion deductible in early years (depending on tax year)

This can significantly improve first-year ROI.

Final Thoughts: Sauna Depreciation Schedules

Saunas can be:

• Powerful revenue drivers

• Valuable tax assets

• Depreciable in many business scenarios

The key is how the sauna is installed and used, not just what it is.

If you’re adding a sauna to a rental or commercial property, it’s worth discussing depreciation strategy with your CPA before installation—small decisions can have large tax impacts.

If you need help choosing a sauna that balances ROI, depreciation flexibility, and long-term value, Haven of Heat can help you plan it correctly from the start.