What This Means for You
A $2M multifamily property is typically an 8-12 unit apartment building in markets like Birmingham, Tulsa, or suburban Atlanta. Each unit multiplies the 5-year personal property: kitchens, bathrooms, flooring, fixtures, and appliances times the unit count.
Beyond the unit-level components, multifamily properties have common-area improvements that qualify for accelerated treatment: parking lot paving and striping, exterior lighting, mailbox stations, laundry room equipment, security cameras, entry systems, hallway finishes, and landscaping.
At the 37% bracket, $304,000 in accelerated deductions generates $195,360 in year-one tax savings. The $1,495 study cost delivers a 75x return. For investors holding multiple apartment buildings, cost segregation across the portfolio can generate six-figure annual tax savings.