Cost segregation on a $400K Single-Family Rental reclassifies $64,000 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 $64,000 splits across 5-, 7-, and 15-year property.
These percentages are illustrative for a single-family rental 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 $23,680 in cash you keep instead of paying — a 26× return on the $895 study. Run it on your actual property below.
The $400K single-family rental at four federal brackets.
The headline figure assumes the top 37% bracket. Most owners are not in it, so here is the same $64,000 Year-1 deduction valued at other federal rates, before and after the $895 study fee. State income tax comes on top where your state conforms to federal bonus depreciation.
| Federal bracket | Year-1 tax value | After the $895 fee |
|---|---|---|
| 24% | $15,360 | $14,465 |
| 32% | $20,480 | $19,585 |
| 35% | $22,400 | $21,505 |
| 37% | $23,680 | $22,785 |
A $400K purchase price falls in the $300K–$700K band of our Single-family / STR / Condo / ADU pricing, a flat $895. At $700,000 and above the next band applies ($995). See the full pricing table.
Depreciation on a $320,000 basis, with and without the study.
The Year-1 reclassification of $64,000 equals about 5.5 years of standard 27.5-year depreciation on this property. After Year 1 the study's annual deduction is smaller, because the reclassified $64,000 has already been taken and only the $256,000 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 | $11,636 | $73,309 | $61,673 |
| Year 2 | $11,636 | $9,309 | $59,345 |
| Year 3 | $11,636 | $9,309 | $57,018 |
| Year 4 | $11,636 | $9,309 | $54,691 |
| Year 5 | $11,636 | $9,309 | $52,364 |
The cumulative gap narrows by $2,327 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.
- $300K single-family rental: $48,000 reclassified on a $240,000 basis
- $500K single-family rental: $80,000 reclassified on a $400,000 basis
- The single-family rental cost segregation explains which components drive these numbers.
Your property is probably not exactly $400K.
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.