Cost segregation for 5–50 unit multifamily

Engineer-reviewed studies for garden-style, mid-rise, podium, walk-up, and townhome MF properties. RSMeans cost data, MACRS classification, IRS Audit Technique Guide alignment. Delivered in days, not weeks.

Order an MF cost seg study See a sample report

CPA-Ready guarantee. 60-day free revisions. Engineer-reviewed where the property warrants.

Pricing by property value

$1M – $2M basis$1,395

$2M – $5M basis$1,895

$5M – $15M basis$2,495

$15M+ basisFrom $2,995

Multi-property and portfolio rates available. Contact us for >5 properties.

Property types we handle

Each MF subtype has its own structural and finish characteristics that affect 5/15-year reclassification. Our engine adjusts the analysis per subtype.

Garden-style MF

Surface parking, lower density, typically 2–3 stories. Land improvements (paving, sitework, landscaping) reclassify into 15-year property at higher rates than mid-rise.

Mid-rise (3–6 stories)

Type III or V construction, often elevators and structured parking. Vertical transportation, MEP risers, and corridor finish are key 15-year contributors.

Podium / Type IIIA

Concrete podium with wood-frame above. Distinct treatment of below-grade vs above-grade systems. Engineer review recommended on properties >$3M.

Walk-up apartments

Older inventory, often pre-1980. Tax basis allocation and lookback Form 3115 opportunities are common — we compute the depreciation correction in the same study.

Townhome MF (5+ units)

Individual unit utilities and finishes increase 5-year personal property fraction. Common amenities (pool, clubhouse, fitness) reclassify separately.

Built-to-rent (BTR) communities

Newer category — single-family-style detached units operated as a single MF asset. We treat as MF for depreciation while preserving SFR-grade finish detail.

How we analyze 5+ unit multifamily

Component-level engineering analysis. The study breaks the property into 80+ depreciable components — foundation, framing, roofing, exterior walls, windows, MEP risers, fire suppression, interior finish, appliances, site improvements, landscaping. Each is classified into a MACRS recovery period (5, 15, 27.5 years) per Rev. Proc. 87-56 and the IRS Audit Technique Guide.

RSMeans 2024 cost data. Replacement costs are derived from the same engineering cost database used by traditional cost-seg firms. Geographic adjustment is applied at metro level for accuracy.

Structural efficiency multiplier for MF 5+. Multifamily of 5+ units shares structural and mechanical systems across more units than smaller MF, reducing the per-unit cost basis. Our engine applies a calibrated efficiency multiplier so the study doesn't overstate component costs.

Engineer-reviewed where the property warrants. Properties above $3M basis and any property with non-standard construction (mixed-use, podium, historic) get engineer review before the report ships.

20–30%

Typical reclassification of MF basis into 5/15-year buckets

100%

Bonus depreciation for property placed in service 2025+ (post-OBBBA)

40+ pages

Full report with component-level schedules and Form 4562/3115-ready tables

Days

Typical turnaround vs 4–8 weeks for traditional firms

What audit support covers (and what it doesn't)

If your CPA receives an IRS notice questioning the cost segregation analysis, here's exactly what's included. We're spelling this out because vague "audit defense" claims are exactly what costs investors when letters arrive.

Covered at no extra charge

Written response to IRS questions about the engineering methodology used
Documentation of asset classifications (5-year, 15-year, 27.5-year)
Re-derivation of any number in the report on request, with full source citations
Free revisions to the study for 60 days from delivery
Coordination with your CPA on the response timeline

Not included (clarified upfront)

IRS representation or appearance — that's your CPA or tax attorney's role
Tax return preparation (Form 4562, Form 3115, depreciation schedules)
Defense of independent tax positions (REPS election, material participation, passive loss treatment)
Testimony in Tax Court or other proceedings
Legal opinions on the deductibility of any specific position

Our scope is the engineering analysis: how we classified assets, what cost data we used, and why each component fell into the 5/15/27.5-year buckets. Anything beyond that lives with your CPA.

Who this works for

Multifamily owners and operators with 5–50 unit properties, or portfolios in that range. Owner-operators looking for accelerated Year-1 deductions on recent acquisitions. CPAs running cost seg analyses for MF clients (white-label option available via the partner portal).

Who this isn't for

Properties >$15M basis where you need a hand-walked, on-site, PE-stamped report for ultra-conservative audit posture — KBKG and ETS are the right call there. Single-family or 2–4 unit MF — our standard MF page handles those at lower price points. Properties with significant deferred maintenance or condemnation issues that affect basis — we'll flag and recommend an on-site review.