Below are typical reclassification percentages and Year-1 federal deduction ranges by property type, drawn from completed Cost Seg Smart studies. Your specific property may sit anywhere in the range depending on age, condition, finish level, and basis allocation.
Reclassification % by property type
| Property type | Typical reclass % | Year-1 benefit range |
|---|---|---|
| Single-family rental | 16-22% | $15K-$50K |
| Short-term rental | 20-28% | $20K-$80K |
| Condo / townhome | 14-18% | $10K-$35K |
| Duplex | 20-25% | $18K-$55K |
| Triplex / fourplex | 22-26% | $30K-$90K |
| Multifamily 5+ | 24-30% | $60K-$300K |
| Office | 25-32% | $40K-$150K |
| Medical office | 30-38% | $60K-$220K |
| Retail | 26-32% | $50K-$180K |
| Restaurant | 32-40% | $80K-$280K |
| Industrial / warehouse | 16-24% | $30K-$120K |
| Mixed-use | 24-30% | $45K-$200K |
Notes on the benchmarks
- Year-1 ranges assume 37% federal bracket and full first-year usability of the loss (REPS, material participation, or active income offset).
- Reclassification % is a property-type aggregate; finish-level and age move properties within the range.
- Benchmarks based on completed studies through 2026, calibrated quarterly.