How much can a $350K duplex actually save in Year 1?

On a $350K purchase price with a 20% land allocation, the depreciable basis is $280,000. An engineering-based cost segregation study reclassifies about $61,600 (22% of basis) into 5-, 7-, and 15-year property — yielding roughly $22,792 in Year-1 federal tax savings at the 37% marginal bracket. Standard 27.5/39-year depreciation produces only $10,182 in the same year.

What does a study cost for this property type and is it worth it?

A Cost Seg Smart study at this purchase price is $995. With ~$22,792 in projected Year-1 tax savings, the return on the study cost is roughly 23× — assuming the investor has the income to absorb the deductions. The study is delivered as a 40+ page IRS-defensible PDF in under one hour.

Worked example · Duplex

Cost segregation on a $350K Duplex reclassifies $61,600 into accelerated depreciation.

Engineering-based study using RSMeans 2026 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.

Accelerated depreciation

$61,600

22% of $280,000 basis

Year-1 federal tax savings

$22,792

at 37% marginal bracket

Return on study cost

23×

study fee $995

MACRS class breakdown

How the $61,600 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.

55%

10%

35%

5-year property

$33,880

Personal property: appliances, carpet, FF&E, decorative finishes. Fully bonus-eligible at 100% under OBBBA (2025+).

7-year property

$6,160

Office furniture, certain equipment, specialty fixtures. Also bonus-eligible.

15-year property

$21,560

Land improvements: driveways, fencing, landscaping, site lighting. Bonus-eligible.

Year-1 deduction comparison

Without a study vs. with one.

Standard depreciation

280,000 ÷ 27.5 years

$10,182

Year-1 deduction (no study)

With cost seg + 100% bonus

5/7/15-yr accelerated

$61,600

Year-1 deduction

Difference

+$51,418 pulled forward into Year 1

At a 37% federal bracket, that's $22,792 in cash you keep instead of paying — a 23× return on the $995 study. Run it on your actual property below.

Run your 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.

Estimate my savings See more multifamily examples Compare providers

If the math works for your property

Order your cost segregation study from $995.

40+ page IRS-defensible PDF · delivered in under 1 hour · CPA-Ready Guarantee

Order my Study See a sample report