Built on a calibrated, data-driven modeling engine — not generic templates. Engineering-based cost segregation with common area and unit finish analysis, delivered in days.
How a Denver multifamily investor accelerated $172,800 in year-one deductions — backed by data, delivered fast.
Property12 Units — Denver, CO
Purchase Price$1,200,000
Year Built2014
Study TierMultifamily (starting at $995)
This investor elected our residential premium cost segregation study. The study reclassified building components including common area finishes, individual unit improvements, and shared mechanical systems — resulting in over $172,000 in first-year deductions beyond standard straight-line depreciation.
Every building system classified by IRS asset life (5yr, 7yr, 15yr, 27.5yr)
MACRS Depreciation Schedules
Full schedules your CPA can use immediately — no additional formatting needed
Bonus Depreciation Modeling
100% bonus depreciation applied to accelerate first-year deductions
IRS ATG Compliance
Methodology aligned with the IRS Audit Techniques Guide for cost segregation
Common Area & Unit Analysis
Separate schedule for common areas, unit finishes, and shared building systems
CPA-Ready PDF Report
Professional report delivered to your inbox in under 1 hour
Why Common Areas & Unit Finishes Matter for Multifamily Investors
Common areas and individual unit finishes are the biggest missed depreciation opportunity for apartment building owners.
Lobby finishes, hallway improvements, laundry facilities, fitness centers, and individual unit fixtures are 5 and 15-year depreciable property — not part of the 27.5-year building. Most standard depreciation schedules treat everything as one bucket.
With bonus depreciation, eligible common area and unit components can be deducted in Year 1 — turning your property improvements into immediate deductions. Our multifamily cost segregation guide breaks down exactly which components qualify and what percentage of basis you can expect to reclassify.
Multifamily properties typically have $30K–$120K+ in shorter-life components across common areas and units. Without cost segregation, those deductions are spread over 27.5 years instead of taken in Year 1.
Categories We Identify
5yrAppliances & In-Unit Equipment
5yrCarpeting & Vinyl Flooring
5yrWindow Treatments & Blinds
5yrCommon Area Furnishings
15yrParking Lots & Walkways
15yrLandscaping & Exterior Lighting
7yrLaundry Equipment & Fitness Machines
Multifamily Pricing. No Surprises.
Every study includes CPA-ready documentation prepared in accordance with IRS guidelines.
MOST POPULAR
Multifamily 2–4 Units
Starting at $995/study
Duplexes, triplexes, and fourplexes — $995–$1,495 based on property value
Engineering-based cost segregation study
5-year + 15-year reclassification
Common area & unit finish analysis
100% bonus depreciation modeling
MACRS schedules + NPV analysis
CPA-ready PDF report
Delivered in under 1 hour
Multifamily 5+ Units
Starting at $995/study
Apartment buildings — $995–$2,995 based on property value
Engineering-based cost segregation study
5-year + 15-year + 39-year analysis
Multi-unit component breakdown
100% bonus depreciation modeling
MACRS schedules + NPV analysis
CPA-ready PDF report
Delivered in under 1 hour
Frequently Asked Questions
Cost segregation is an IRS-recognized depreciation method that reclassifies portions of your property into shorter depreciation categories (5, 7, and 15 years instead of 27.5). For multifamily investors, this means accelerating tens of thousands of dollars in deductions into the early years of ownership — reducing your taxable income significantly on apartment buildings, duplexes, and other multifamily properties.
Common areas that qualify include lobbies and entryways, hallway finishes, parking lots and garages, landscaping, exterior lighting, laundry facilities, fitness centers, pool areas, and mailroom fixtures. These are classified as 5, 7, or 15-year property — not part of the 27.5-year building structure — and can be depreciated on an accelerated schedule.
Yes. Duplexes, triplexes, and fourplexes all qualify for cost segregation at residential rates (27.5-year recovery period for the building). The same reclassification into 5, 7, and 15-year categories applies. Smaller multifamily properties often have a higher percentage of reclassifiable components per unit. Many investors use them as a house hacking with small multifamily strategy to offset living expenses with tax savings.
Just the basics: property address, purchase price, square footage, and year built. Our intake form takes about 5 minutes. No site visit required. Photos and documents (closing statement, tax assessment) are optional but can improve accuracy.
Studies are delivered in under 1 hour as a CPA-ready PDF sent to your email. Your CPA can use it directly — no additional formatting needed.
Yes. If you didn't do cost segregation when you bought the property, you can file a Form 3115 (Change in Accounting Method) to catch up on missed depreciation — without amending prior returns. The full catch-up amount is taken in a single year.
Yes. Our methodology follows the IRS Cost Segregation Audit Techniques Guide. Each study includes component-level analysis, IRS asset class citations, and supporting engineering narratives. We recommend all clients work with their CPA when filing.
Multifamily MACRS Breakdown: 39-Year Base Makes Reclassification More Valuable
Properties with 5+ residential units are classified as commercial (39-year recovery) under IRS rules. The longer base recovery period means each dollar reclassified into 5, 7, or 15-year property creates a larger timing benefit than residential 27.5-year properties.
MACRS Class
Multifamily Components
Typical % of Basis
5-Year
Per-unit appliances, flooring, cabinetry, countertops, light fixtures, bathroom vanities, window treatments across all units. Common-area carpeting, lobby furniture, fitness equipment, pool furniture.
Foundation, structural frame, roof, exterior envelope, elevators, central HVAC plant, main electrical distribution, plumbing risers, fire suppression trunk lines
Remainder
Larger complexes with extensive site work (pools, parking garages, playgrounds) reclassify more into 15-year property. Garden-style apartments with surface parking outperform high-rises on a percentage basis due to proportionally more land improvements. See our multifamily benchmark data for typical reclassification by size and age.
See Real Multifamily Cost Segregation Results
Browse actual depreciation breakdowns across multifamily property sizes.
