Charleston, SC · $580K
Original 1990s triplex
Year-1 federal benefit
$29,200
Triplex
Triplex cost segregation: $25K–$165K Year-1 deductions.
The triplex is the duplex's better-yielding cousin — three sets of kitchens, bathrooms, HVAC, water heaters compress into a tighter footprint and a denser 5-yr bucket.
The 30-second answer
Triplex cost segregation is an engineering-based study that reclassifies a three-unit rental's components out of the default 27.5-year residential schedule into faster 5- and 15-year MACRS classes. A triplex reclassifies in line with other small residential — typically 8–26% of building basis — because three sets of kitchens, bathrooms, HVAC systems, and water heaters compress into one building and form a dense 5-year bucket, on top of the shared parking, landscaping, and site work. With 100% bonus depreciation the reclassified amount is deductible in Year 1; the loss is passive under IRC §469 unless you qualify as a real estate professional or materially participate.
Triplex cost segregation reclassifies 8–26% of depreciable basis from the 27.5- or 39-year shell into 5-, 7-, and 15-year MACRS classes per 26 U.S.C. § 168 and Rev. Proc. 87-56. Under OBBBA's permanent 100% bonus depreciation (placed-in-service 2025+), reclassified components are deductible in year one. All credible cost-seg providers use the same federal framework — public government construction cost data, MACRS classification, IRS Audit Techniques Guide (Pub 5653) compliance. What differs across property types is land-allocation share, FF&E weight, and material-participation eligibility under §469. For the general explanation, see what a cost segregation study is and what the report contains.
| Property type | Reclass to 5/7/15-yr | Year-1 federal benefit | Study cost |
|---|---|---|---|
| STR | 19–39% | $45K–$280K | From $495 |
| SFR | 8–32% | $16K–$165K | From $495 |
| Condo | 10–19% | $18K–$76K | From $495 |
| Brownstone | 5–20% | $60K–$640K | From $495 |
| Rowhouse | 5–18% | $10K–$170K | From $495 |
| Duplex | 8–21% | $19K–$105K | From $995 |
| Fourplex | 14–29% | $56K–$230K | From $995 |
| Office | 16–29% | $84K–$650K | From $995 |
| Retail | 20–37% | $90K–$690K | From $995 |
| Industrial | 15–28% | $78K–$840K | From $2,495 |
| Self-storage | 10–36% | $75K–$1.6M | From $2,495 |
| Medical office | 16–29% | $84K–$540K | From $2,995 |
| Mixed-use | 12–23% | $63K–$515K | From $995 |
| Multifamily | 14–28% | $44K–$200K | From $995 |
| Multifamily 5+ | 14–26% | $110K–$1.0M | From $1,995 |
| Triplex this page | 8–26% | $25K–$165K | From $995 |
| Restaurant | 16–29% | $72K–$430K | From $2,995 |
| Vet | 19–36% | $85K–$540K | From $2,995 |
| Gym | 21–40% | $110K–$900K | From $2,995 |
| Dealership | 25–47% | $465K–$4.2M | From $2,995 |
| ADU | 7–14% | $8K–$39K | From $495 |
| Commercial | 18–34% | $94K–$765K | From $995 |
| Data center | 43–65% | $2.5M–$29M | $4,995–$54,995 (sub-$100M); $100M+ by proposal |
| Senior living | 21–39% | $315K–$2.3M | By proposal |
| Funeral homes | 18–30% | $135K–$900K | By proposal |
| Child day care | 15–28% | $56K–$630K | From $2,995 |
| Adult day care | 14–26% | $78K–$780K | From $2,995 |
| Church | 10–22% | $37K–$825K | From $2,995 |
| Farm | 8–65%† | $19K–$780K | From $995 |
Reclassification ranges from the bands we publish per property type (measured on our delivered studies where we have enough of a type, modeled elsewhere); Year-1 federal benefit assumes 37% bracket and full first-year usability. Study costs are Cost Seg Smart pricing — comparable engineering studies elsewhere range $5,000–$15,000+. The ADU figure is an ADU acquired with a house; one the owner built or converted is priced on its documented construction cost, from $995. See full provider comparison.
† Farm: the figure is property with a recovery period of 20 years or less, on a farm with one or more rental houses on it. It counts 10- and 20-year property, which no other row has, and its dollar figure is a first-year deduction, not tax saved. A farm is quoted from a list of what is on it; see how.
Worked examples · modeled
What triplex cost seg looks like in practice.
Illustrative, modeled properties, not client engagements. Estimates assume 37% federal bracket and full first-year usability of the loss (active income offset or REPS). Your actual benefit varies with bracket, basis allocation, and CPA's treatment.
Good fit when…
- ✓Pure-rental triplexes
- ✓House-hackers with rental-side basis allocation
Skip it when…
- ×Triplex with shared utilities (lower reclassification)
Estimate
Run the numbers on your triplex.
Pre-set to Triplex defaults — adjust price + bracket to match your property.
Estimated Year-1 tax savings · Click to order →
$26,156
on $70,691 of accelerated deductions (Year 1, beyond straight-line)
typical $20,343–$40,687
Want this in writing for your CPA? Get a 1-page analysis →5-yr15-yr27.5/39-yr
Study cost
$1,295
ROI on study
20×
Delivery
1–2 business days
Your study includes more than the report.
- Engineering-based, property-specific analysis
- Direct coordination with your CPA
- Free revisions for 12 months; corrections of our errors always free
- Renovation analysis under $100,000 included
- Lifetime written audit support
- CPA-ready depreciation schedules and Excel fixed-asset file
Everything included in your study fee. Form 3115 preparation available separately.
Estimate based on public government construction cost data and IRC §168(k). Your actual result varies with property age, condition, and basis allocation.
Frequently asked
Triplex cost segregation, by question.
Do triplexes qualify for cost segregation?
Yes, and they reclassify high for residential — typically 8–26% of basis — because three sets of kitchens, baths, HVAC, and water heaters form a dense 5-year bucket, plus the parking and site work. The whole reclassified amount is deductible in Year 1 under 100% bonus depreciation.
Is a triplex better than a duplex for cost segregation?
Usually a bit, yes. A triplex adds a third set of unit fixtures into one building, so the 5-year personal-property share is denser — typically 8–26% versus 8–21% for a duplex. The lookback math is also strong if you've owned it a few years.
How much does a triplex cost segregation study cost?
Triplexes are priced on the multifamily 2–4 tier: from $995 for a sub-$300K property, $1,295 for $300K–$700K, and $1,495 up to $1M, delivered as a CPA-ready PDF, within 1–2 business days.
Regulation references
The rules that govern triplex cost segregation.
- Cost Segregation on a Triplex: About the Same Share as a Duplex, More Dollars — our in-depth guide to triplex cost segregation.
- Real estate professional status (REPS) — the 750-hour and 51% tests under 26 U.S.C. § 469(c)(7), and the seven material participation tests under Treas. Reg. § 1.469-5T. Required to offset W-2 income with long-term rental losses unless the property qualifies under the STR loophole.
- Form 3115 (catch-up depreciation) — how to apply cost segregation to a property placed in service in a prior year. Full § 481(a) catch-up adjustment, automatic change-number 7, no IRS user fee.
- Treas. Reg. § 1.469-1T — full reference — all six (A)–(F) exceptions that reclassify a rental as non-rental for passive activity loss purposes.
- Regulations hub — full canonical reference for all cost segregation regulations.
- irsdepreciationrules.com — companion plain-language reference for the underlying IRS depreciation statutes (operated by Cost Seg Smart).
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