San Diego, CA · $640K
Beachside condo, premium finishes
Year-1 federal benefit
$24,300
Condo / Townhome
Condo cost segregation: $10K–$35K Year-1 deductions.
Condos have less land-improvement weight (no driveway, smaller exterior footprint), so the math is tighter than SFR.
Real examples
What condo cost seg looks like in practice.
Estimates assume 37% federal bracket and full first-year usability of the loss (active income offset or REPS). Your actual benefit varies with bracket, basis allocation, and CPA's treatment.
Good fit when…
- ✓Higher-priced condos (>$400K basis) with premium finishes
- ✓STR-zoned condos in resort markets (unlocks the STR loophole even on a smaller footprint)
Skip it when…
- ×Condos under ~$200K basis
- ×HOA-heavy buildings where the unit interior is the only depreciable component
Estimate
Run the numbers on your condo.
Pre-set to Condo defaults — adjust price + bracket to match your property.
Estimated Year-1 tax savings
$29,600
on $80,000 of accelerated deductions
5-yr15-yr27.5/39-yr
Study cost
$795
ROI on study
37×
Delivery
< 1 hour
Estimate based on RSMeans 2024 cost data and IRC §168(k). Your actual result varies with property age, condition, and basis allocation.