Cost segregation on a $350K Duplex reclassifies $37,800 into accelerated depreciation.
Engineering-based study using industry-standard 2026 construction cost data and IRS Audit Techniques Guide methodology. Numbers below are computed from the same formula our production studies use — adjust for your actual property with the calculator at the bottom.
How the $37,800 splits across 5-, 7-, and 15-year property.
These percentages are illustrative for a duplex of this size and age. Your study reports component-level detail so your CPA can place each item on the correct depreciation schedule.
5-year property
Personal property: appliances, carpet, FF&E, decorative finishes. Fully bonus-eligible at 100% under OBBBA (2025+).
7-year property
Office furniture, certain equipment, specialty fixtures. Also bonus-eligible.
15-year property
Land improvements: driveways, fencing, landscaping, site lighting. Bonus-eligible.
Without a study vs. with one.
At a 37% federal bracket, that's $13,986 in cash you keep instead of paying — a 11× return on the $1,295 study. Run it on your actual property below.
The $350K duplex at four federal brackets.
The headline figure assumes the top 37% bracket. Most owners are not in it, so here is the same $37,800 Year-1 deduction valued at other federal rates, before and after the $1,295 study fee. State income tax comes on top where your state conforms to federal bonus depreciation.
| Federal bracket | Year-1 tax value | After the $1,295 fee |
|---|---|---|
| 24% | $9,072 | $7,777 |
| 32% | $12,096 | $10,801 |
| 35% | $13,230 | $11,935 |
| 37% | $13,986 | $12,691 |
A $350K purchase price falls in the $300K–$700K band of our Multifamily 2–4 (Duplex / Triplex / Fourplex) pricing, a flat $1,295. At $700,000 and above the next band applies ($1,495). See the full pricing table.
Depreciation on a $280,000 basis, with and without the study.
The Year-1 reclassification of $37,800 equals about 3.7 years of standard 27.5-year depreciation on this property. After Year 1 the study's annual deduction is smaller, because the reclassified $37,800 has already been taken and only the $242,200 remaining building basis is still depreciating. Full years shown; the purchase year is shorter under the mid-month convention.
| Year | No study | With study | Cumulative extra deduction |
|---|---|---|---|
| Year 1 | $10,182 | $46,607 | $36,425 |
| Year 2 | $10,182 | $8,807 | $35,051 |
| Year 3 | $10,182 | $8,807 | $33,676 |
| Year 4 | $10,182 | $8,807 | $32,302 |
| Year 5 | $10,182 | $8,807 | $30,927 |
The cumulative gap narrows by $1,375 a year and closes over the recovery period; cost segregation changes when you deduct, not how much. Depreciation taken is generally recaptured on a taxable sale.
- $500K duplex: $54,000 reclassified on a $400,000 basis
- The duplex cost segregation guide explains which components drive these numbers.
Your property is probably not exactly $350K.
Plug in your actual purchase price, property type, age, and finish level on the homepage calculator. It uses the same engine — no signup, results in 60 seconds.