What This Means for You
At $5M, a multifamily apartment complex (typically 20-50 units) is one of the most cost-segregation-friendly investment types. The combination of per-unit components (kitchens, bathrooms, flooring, fixtures across every apartment) and common-area improvements (lobbies, hallways, parking structures, laundry facilities, fitness rooms, pools) creates an exceptionally rich pool of reclassifiable building elements. The study typically identifies $720K in accelerated depreciation.
The economics at this scale are compelling: $720K in accelerated depreciation generates approximately $266K in first-year tax savings against a study cost of $2,495. That's a 107x return. For syndicators and fund managers, cost segregation at this level is standard operating procedure — the accelerated depreciation is a key component of the investor returns they market to limited partners.
Multifamily properties also benefit from common-area site improvements that are often overlooked: parking lot paving and striping, sidewalks, retaining walls, irrigation systems, exterior lighting, signage, mailbox clusters, dumpster enclosures, and playground equipment. These 15-year property components can represent 8-12% of the total depreciable basis on their own.
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IRS Compliant
Methodology aligned with IRS Audit Techniques Guide
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CPA-Ready Reports
30-40 page PDF your CPA can file directly
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Money-Back Guarantee
Full refund if the study doesn't save you money
