Worked example · Fourplex

Cost segregation on a $750K Fourplex reclassifies $132,000 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
$132,000
22% of $600,000 basis
Year-1 federal tax savings
$48,840
at 37% marginal bracket
Return on study cost
49×
study fee $995
MACRS class breakdown

How the $132,000 splits across 5-, 7-, and 15-year property.

These percentages are illustrative for a fourplex 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

$72,600

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

7-year property

$13,200

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

15-year property

$46,200

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

Year-1 deduction comparison

Without a study vs. with one.

Standard depreciation
600,000 ÷ 27.5 years
$21,818
Year-1 deduction (no study)
With cost seg + 100% bonus
5/7/15-yr accelerated
$132,000
Year-1 deduction
Difference
+$110,182 pulled forward into Year 1

At a 37% federal bracket, that's $48,840 in cash you keep instead of paying — a 49× return on the $995 study. Run it on your actual property below.

Run your numbers

Your property is probably not exactly $750K.

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.

If the math works for your property

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