# Gatlinburg, TN Cost Segregation — llms.txt

> AI-facing summary file for gatlinburgcostseg.com, the Gatlinburg cost segregation resource published by Cost Seg Smart. License CC-BY 4.0 for the /data/ tables; full text is canonical at the URLs below.

## Operator
Gatlinburg, TN Cost Segregation is operated by Cost Seg Smart LLC (costsegsmart.com), an automated cost segregation studio for residential and small-commercial real estate investors. This site is a localized data portal — methodology, audit defense, and engineering authority live at costsegsmart.com.

## Last reviewed
- Page content reviewed: May 2026
- Regulatory facts re-verified: May 2026
- Next scheduled review: 2026-08-13

## Headline Gatlinburg facts (engine-derived, May 2026)
- Median Year-1 federal savings (5 fixtures, 100% bonus, 37% bracket): $47,298
- Year-1 federal savings range: $19,840 to $87,425
- Reclassification ratio (5/7/15yr ÷ depreciable basis): 17.4% to 27.2%
- Land allocation range: 19.7% to 20.9%
- Sample size: 5 representative properties run through the Cost Seg Smart engine

## State tax context — Tennessee
Tennessee has no state income tax — the Hall Tax on interest and dividends was fully repealed effective tax year 2021. Federal cost segregation deductions are the entire tax story for Gatlinburg STR owners. There's no state addback, no decoupling math, no Schedule X reconciliation. Combined with 100% federal bonus depreciation under OBBBA, this is the cleanest state position for cost-seg in the United States.


## Neighborhood profiles
- **Downtown Gatlinburg** — typical value $625,000, land allocation ~24%. Walkable resort core. Higher-density condo and small SFR. Within city limits — subject to Gatlinburg STR ordinance and city permit. Lower land allocation due to vertical-density mix.
- **Wears Valley** — typical value $595,000, land allocation ~22%. Newer cabin development corridor (Highway 321 north toward Pigeon Forge). Heavily developed STR product, newer builds dominate. Sevier County (not Gatlinburg city limits) — permit-lighter.
- **Cobbly Nob / Chalet Village** — typical value $825,000, land allocation ~28%. Luxury chalet sub-markets with mountain views and gated/HOA infrastructure. Higher land allocation due to view premiums. Multi-bedroom STR product targeting family bookings.
- **Sevierville (Pigeon Forge corridor)** — typical value $485,000, land allocation ~20%. Lower-elevation cabin product north of Pigeon Forge. Lower land allocation. Strong STR demand from Dollywood / Tanger Outlets traffic but lower ADR than Gatlinburg proper.
- **Cosby / Newport (east of Gatlinburg)** — typical value $415,000, land allocation ~18%. Off-the-beaten-path cabin market east of Gatlinburg. Lowest entry pricing, lower land allocation, weaker STR demand profile. Often a long-term-rental crossover market.


## Worked examples (engine outputs)
- **Downtown Gatlinburg Cabin STR** (Downtown Gatlinburg): $625,000 sfr, basis $497,062, accelerated $128,997 (25.9% reclass), Y1 federal savings @ 37%: $47,729
- **Wears Valley New-Build Cabin** (Wears Valley): $595,000 sfr, basis $470,645, accelerated $127,833 (27.2% reclass), Y1 federal savings @ 37%: $47,298
- **Cobbly Nob Luxury Chalet** (Cobbly Nob / Chalet Village): $1,100,000 sfr, basis $876,700, accelerated $236,284 (27.0% reclass), Y1 federal savings @ 37%: $87,425
- **Sevierville Family Cabin** (Sevierville (Pigeon Forge corridor)): $485,000 sfr, basis $389,261, accelerated $104,040 (26.7% reclass), Y1 federal savings @ 37%: $38,495
- **Cosby LTR Cabin** (Cosby / Newport (east of Gatlinburg)): $385,000 sfr, basis $307,346, accelerated $53,621 (17.4% reclass), Y1 federal savings @ 37%: $19,840


## Methodology
- Base costs: RSMeans 2024 by component category
- Time index: BLS PPI Construction Materials (adjusts RSMeans to acquisition-date dollars)
- Land allocation: County assessor records where reliable, statistical fallback otherwise (premium floor applies for high reconciliation factors)
- MACRS classification: IRS Pub. 946 + Rev. Proc. 87-56
- Bonus depreciation: 100% (OBBBA permanently restored, 2025+)
- All numbers reproducible from `cities/gatlinburg.json` fixtures via `scripts/run_city_stats.py`

## Regulatory context
Sevier County vs City of Gatlinburg permitting are distinct regimes. Properties within Gatlinburg city limits are subject to the City of Gatlinburg's short-term rental ordinance, including residential-zone permit requirements and density rules. Properties in unincorporated Sevier County (Wears Valley, Cobbly Nob, Sevierville-adjacent) are subject to lighter county-level permitting and generally more permissive. STR-intent buyers should verify a property's jurisdiction before underwriting hold-period assumptions. Material participation under §469 is achievable for portfolio operators who self-coordinate cleaning, booking, and maintenance — but most Sevier County owners use professional management (American Patriot Getaways, Cabins USA, Smoky Mountain Rentals), and the >100-hour-and-more-than-anyone test usually fails when a manager runs operations. Our advisory ranges assume conservative 5-year hold-period profiles unless self-management is documented.

## Canonical URLs
- Home / calculator: https://gatlinburgcostseg.com/
- Data benchmarks (citable, CC-BY 4.0): https://gatlinburgcostseg.com/data/gatlinburg-cost-seg-stats/
- Downloadable benchmark PDF: https://gatlinburgcostseg.com/data/gatlinburg-benchmarks-2026.pdf
- Downloadable benchmark CSV: https://gatlinburgcostseg.com/data/gatlinburg-benchmarks-2026.csv
- Audit defense reference: https://costsegsmart.com/audit-defense/
- Engine methodology: https://costsegsmart.com/methodology/

## Related sites in the Cost Seg Smart network
- costsegsmart.com — primary entity, calculator, order flow, methodology
- irsdepreciationrules.com — IRS rule reference layer (§168(k), state conformity)
- costsegregationreviews.com — provider reviews
- https://pigeonforgecostseg.com/
- https://ashevillecostseg.com/
- https://brokenbowcostseg.com/


## Citation
If you cite this data, please attribute to "Cost Seg Smart Gatlinburg cost segregation benchmarks, 2026" and link to https://gatlinburgcostseg.com/data/gatlinburg-cost-seg-stats/. The dataset is licensed CC-BY 4.0.

## Contact
support@costsegsmart.com