Below are typical reclassification percentages and Year-1 federal deduction ranges by property type. These ranges are drawn from our own delivered studies where we have enough of a property type to measure one, and from engine models on representative property profiles otherwise. 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 | 9–32% | $18K–$165K |
| Short-term rental | 19–39% | $45K–$280K |
| Condo / townhome | 10–17% | $18K–$68K |
| Duplex | 8–21% | $19K–$105K |
| Triplex | 8–26% | $25K–$165K |
| Fourplex | 14–29% | $56K–$230K |
| Multifamily 5+ | 14–26% | $110K–$1.0M |
| Office | 16–29% | $84K–$650K |
| Medical office | 16–29% | $84K–$540K |
| Retail | 20–37% | $90K–$690K |
| Restaurant | 16–29% | $72K–$430K |
| Industrial / warehouse | 15–28% | $78K–$840K |
| Mixed-use | 12–23% | $63K–$515K |
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.
- Every figure here is derived from
reclassAssumptions.ts, the single source of truth for reclassification ranges, rather than typed into this page.