Frequently Asked Questions

Everything you need to know about our cost segregation studies

What is Cost Segregation?
Cost segregation is an IRS-recognized tax strategy that allows property owners to accelerate depreciation on certain components of their building. Instead of depreciating everything over 27.5 years, we identify personal property (like carpets, fixtures, and appliances) and land improvements (like paving and landscaping) that can be depreciated over much shorter periods (5, 7, or 15 years). This results in a larger tax deduction in the early years of owning the property, increasing your cash flow.
Is this accepted by the IRS?
Yes. Our cost segregation reports are IRS-compliant and designed to meet all necessary requirements for audit-grade precision.
What happens after I submit the form?
After you submit your property details and complete the payment, our proprietary software begins processing your information. You will receive your complete, audit-ready cost segregation report via email within 48 hours.
Can I talk to someone?
Yes. While our process is designed to be fully automated, we do have support available for questions. You can reach us by phone at 307-271-8741 or by email at support@rentalwriteoff.com for any assistance you need.
What if I own multiple properties?
Our platform is designed to generate a dedicated, detailed report for each individual property to ensure audit-grade accuracy. If you own multiple properties, you will need to complete the submission process for each one.
Is this really worth it for my single rental property?
In the past, the high cost of engineering-based studies made it impractical for smaller properties. Our proprietary platform makes it affordable for the first time. For a small one-time fee, you can potentially unlock thousands of dollars in tax deductions. Use our free calculator to see your specific savings potential—most users find the ROI is significant.
What types of properties do you support?
Our platform is optimized for residential rental properties, including residential homes, condos, townhouses, and mobile homes. We do not currently support commercial or multi-family properties.
How is the report used for my tax filing?
The report gives your CPA or tax preparer the detailed data they need to maximize your depreciation deductions. How they use it depends on when you placed the property in service:

  • For Properties Placed in Service in a Prior Year: Your CPA will use the report to file IRS Form 3115, Application for Change in Accounting Method. This lets you claim a large "catch-up" deduction for all the depreciation you missed in previous years.
  • For Properties Placed in Service in the Current Tax Year: No Form 3115 is needed. Your CPA will simply use our report to set up your initial depreciation schedule on IRS Form 4562, Depreciation and Amortization, ensuring you start with the maximum deduction from day one.
What kind of photos do I need to take?
If your property appraisal contains good photos of each room and the exterior, you can often just upload that and you won't need to take any new photos. Otherwise, simple smartphone photos of each room and the exterior are sufficient.
How long does the whole process take?
It takes less than five minutes to provide the necessary property information through our platform. After you submit your details, our proprietary software will perform the analysis, and you will receive your complete, audit-ready cost segregation study within 48 hours.
Can I use this for a property I bought years ago?
Yes. This is called a "look-back" study. You can perform a study on a property you placed in service in a prior year and claim the "catch-up" depreciation you missed. Our platform fully supports look-back studies.
What happens if I sell the property later?
When you sell a property, you may have to "recapture" the depreciation you've taken. However, since capital gains tax rates are generally lower than ordinary income tax rates, you typically still come out ahead.
What does audit protection include?
RentalWriteOff provides audit protection for cost segregation reports delivered through our service. If you are audited by the IRS or a state taxing authority, we will:

  • Provide supporting documentation for your cost segregation study
  • Respond to reasonable inquiries from the taxing authority regarding our methodology and calculations

Audit protection is available for a period of five (5) years from the delivery date of your report. RentalWriteOff includes up to four (4) hours of audit protection at no additional cost. Additional support beyond this limit may be provided at your request and will be billed at $300 per hour.