What Percentage Should You Actually Expect From a Cost Segregation Study?
Real accelerated depreciation percentages from real reports, broken down by property type. Not marketing numbers.
Tax strategies, depreciation data, and market analysis for rental property investors.
Real accelerated depreciation percentages from real reports, broken down by property type. Not marketing numbers.
What you pay, what you get back, and how the ROI stacks up across property types and price points.
The full list of 5-year, 7-year, and 15-year components from our engineering database. The page your CPA will bookmark.
Almost every item in your STR can be depreciated faster than you think. Here's the full playbook.
Pricing from $495 to $15,000+ — what drives the cost, what you get, and whether the ROI justifies the investment.
What the IRS actually looks for, what triggers scrutiny, and how to ensure your study holds up.
Technically yes — but will the IRS accept it? Here's what's required and what goes wrong.
Cost seg isn't always the right move. Here's when it doesn't make sense — and when it does.
No — but REPS and the STR exception determine how you use those deductions. Here's the breakdown.
Both accelerate deductions, but they work differently. Here's when each applies and how they interact with cost seg.
Not all states conform to federal rules. CA, NY, NJ don't allow bonus depreciation — here's what that means.
Engineering-based benchmarks: typical reclassification rates, tax savings ranges, and what drives variation.
How short-term rental owners use material participation to offset W-2 income with depreciation losses.
The recapture math, the rate arbitrage, and when short-hold cost seg still makes sense.
Stepped-up basis resets the depreciation clock. Here's how cost seg works on inherited real estate.
The basis is the lower of adjusted basis or FMV at conversion. Here's what that means for cost seg.
Kitchen remodel, new HVAC, landscaping — renovations create new depreciable assets you can accelerate.
How the residential/commercial allocation works and what to expect from a mixed-use study.
Less than you think. Purchase price, address, year built — about 5 minutes of information.
The 13 principal elements, engineering-based methodology, and what separates a real study from a spreadsheet.
Traditional firms: 4-8 weeks. Modern providers: under 1 hour. Same methodology, different delivery.
The IRS requires adequate documentation, not a physical inspection. Here's how remote observation works.
The OBBBA restored 100% for 2025+. Here's what changed and whether you should wait or act now.
CA, NY, NJ don't conform. Here's what that means for your state-level deductions.
Side-by-side comparison on a $750K property. The Year 1 gap is staggering.
Just closed on your first rental? Make sure you claim every dollar in Year 1.
Many CPAs haven't worked with a cost seg study before. Here's how to get them up to speed.
What to look for, red flags to avoid, and why price doesn't equal quality.
100% bonus depreciation is back. This may be the most powerful year to do a cost seg study.
Bought years ago and never did a cost seg? Form 3115 may let you catch up in one tax year.
Clean records, maximum basis, no lookback complications. The ideal time for a study.
The most common depreciation errors we see, and how to avoid leaving money on the table.
Material participation + accelerated depreciation can create losses that offset your salary.
You track every cleaning fee but ignore the $50K deduction sitting right in front of you.
House hacking a duplex? Cost seg works on the rental portion. A $450K duplex can generate $14K+ in Year 1.
The 2% rule says your deal is bad. Cost seg says it just put $25K in your pocket. Which do you trust?
Depreciation is only the start. Here are the deductions most short-term rental owners overlook entirely.
Multi-family offers some of the strongest cost seg results. Here's how to get the most from yours.
Office, retail, medical, and industrial buildings depreciate over 39 years -- but much of that qualifies for 5, 7, or 15.
Two of the most powerful tax strategies in real estate work even better together.
The #1 objection, debunked. You face recapture either way. The question is $40K now or $1,500/yr for 27 years.
Traditional firms needed $500K+. At $795, the math works for properties as low as $150K.
Austin's rapid appreciation makes cost segregation especially valuable for investors who bought in the last five years.
The top STR market in the US by volume. Cabins here are tailor-made for cost segregation.
Strong rental demand and rising property values make Denver one of the best cost seg markets in the West.
Florida's tax-free status plus Miami's premium real estate means massive first-year depreciation potential.
Phoenix's explosive population growth has driven property values up, creating strong cost seg opportunities.
LA's premium property prices mean six-figure first-year deductions are common with cost segregation.
Savannah's booming STR market and older building stock create strong cost segregation results.
Unique desert properties with high nightly rates and strong occupancy make cost seg a no-brainer here.
Sedona's luxury short-term rental market commands top-dollar rates and delivers strong depreciation.
Beachfront condos and vacation homes along the Emerald Coast are prime cost segregation candidates.
Key West's high property values and strong STR demand make it one of Florida's best cost seg markets.
Affordable beach properties with solid STR income. Cost seg amplifies returns at every price point.
Hawaii's high construction costs and property values create some of the largest cost seg deductions in the US.
Large beach houses with strong seasonal revenue. Cost seg on an OBX rental often pays for itself 10x over.
Ski season plus summer tourism means 12 months of rental income. Cost seg captures the full depreciation upfront.
Tennessee's zero income tax plus Nashville's red-hot STR market makes cost segregation especially powerful here.
San Diego's high-value coastal properties generate substantial first-year depreciation through cost segregation.
Charleston's historic homes and strong tourism drive both STR income and cost seg potential.
High-end vacation rentals with pools and resort-style amenities are tailor-made for cost segregation.
Orlando's year-round tourism creates consistent STR demand. Cost seg turns that into first-year tax savings.
Tampa's population surge and Florida's tax-free status make it a prime market for cost segregation studies.
Dallas's booming construction and zero state income tax make cost segregation a powerful tool for investors.
Houston's diverse economy and affordable property prices deliver strong ROI on cost segregation studies.
Atlanta's rental market is one of the strongest in the Southeast. Cost seg captures depreciation upfront.
Charlotte's rapid growth and strong rental demand create ideal conditions for cost segregation.
The Triangle's tech-driven growth means rising property values and strong cost segregation outcomes.
Boise's appreciation has outpaced the national average. Cost seg locks in depreciation on those gains.
SLC's proximity to world-class skiing and steady population growth drives both rental income and depreciation.
Portland's unique rental market and strong tenant demand make cost segregation a smart move for investors.
Seattle's premium property prices and no state income tax make it one of the top cost seg markets nationwide.
Nevada's zero income tax and Vegas's massive tourism create ideal conditions for STR cost segregation.
San Antonio's lower price points mean cost segregation ROI is among the highest in Texas.
Affordable properties, no state tax, and strong population growth. Cost seg here delivers outsized ROI.
Minneapolis's stable rental market and high-quality housing stock make cost segregation studies especially effective.
Chicago's deep multifamily inventory and diverse property types create strong cost segregation opportunities.
New York's sky-high property values mean cost segregation deductions regularly reach six figures in Year 1.
Boston's premium rental market and older building stock create strong cost segregation outcomes.
DC's stable economy and high property values make it a consistent performer for cost segregation studies.
San Francisco's among the highest property values in the nation. Cost seg turns that into massive first-year deductions.
Affordable entry points, strong rental demand, and mountain-town tourism create solid cost seg ROI.
Asheville's arts scene and mountain setting draw year-round visitors. Cost seg captures upfront depreciation on STR investments.
Myrtle Beach's affordable condos and beach houses deliver some of the highest cost seg ROI at lower price points.
Hilton Head's luxury vacation rental market means higher property values and larger depreciation deductions.
Park City's high nightly rates and premium construction create some of the strongest cost seg results in Utah.
Big Bear's proximity to Los Angeles drives consistent STR demand. Cost seg accelerates depreciation on cabin investments.