Most rental property owners save $15K–$60K+ in Year 1 with a cost segregation study. Even a basic single-family rental has components that qualify for accelerated depreciation.
Instant estimate. No email required.
When you buy a rental property, the IRS requires you to depreciate it over 27.5 years. That means on a $500K property (after land), you deduct about $14,500 per year. A cost segregation study changes that math dramatically.
Components like flooring, cabinetry, countertops, appliances, plumbing fixtures, electrical outlets, landscaping, driveways, and fencing don't need to be depreciated over 27.5 years. They qualify for 5, 7, or 15-year recovery periods — and with 100% bonus depreciation, you deduct them entirely in Year 1.
You don't need a furnished property to benefit. Even a basic long-term rental has 15–20% of its depreciable basis in accelerated classes. On a $400K property, that's $48K–$64K in first-year deductions.
You don't need to have purchased recently. If you've been depreciating straight-line for years, you can file a "catch-up" study using IRS Form 3115 and take all the missed accelerated depreciation in a single year — no amended returns needed.
See detailed breakdowns for single-family rentals, duplexes, and multifamily properties.
A cost segregation study reclassifies components of your rental — flooring, cabinetry, appliances, landscaping, driveways — into shorter depreciation periods (5, 7, and 15 years) instead of the default 27.5 years. With 100% bonus depreciation, the entire reclassified amount is deductible in Year 1.
Yes. You can file a "lookback" study using IRS Form 3115 (change of accounting method) and take all the missed accelerated depreciation in a single year. No amended returns needed. This works for any property you currently own and hold as a rental.
Yes. 100% bonus depreciation is available for property placed in service in 2025 and beyond under current federal tax law. All property reclassified through cost segregation is eligible for full first-year deduction.
Cost segregation typically delivers positive ROI on properties valued at $200K and above for investors in the 24%+ tax bracket. Our studies start at $795 for residential properties.