If you own a single-family rental property, there's never been a better time to consider a cost segregation study.
Thanks to the new 100% first-year depreciation allowance in the Big Beautiful Bill, real estate investors now have a powerful opportunity to accelerate deductions, slash tax liability immediately, and dramatically boost year-one cash flow.
But here's the problem: most cost segregation studies have been too expensive and overbuilt for small investors—until now.
What the Big Beautiful Bill Changed
The new legislation allows for 100% bonus depreciation on any components with a recovery period of 20 years or less. That includes:
- 5-year property (appliances, carpet, fixtures)
- 7-year property (certain security and specialty items)
- 15-year land improvements (driveways, landscaping)
With a proper cost segregation study, you can reclassify those assets from 27.5-year residential property and write them off immediately.
Real-World Impact
Let's say you purchased a rental property for $425,000, with $100,000 allocated to land (not depreciable). That leaves a depreciable basis of $325,000.
| Asset Category | Allocated Cost | Depreciation Schedule | Year-One Deduction |
|---|---|---|---|
| 5-Year Property | $31,500 | 100% bonus | $31,500 |
| 15-Year Improvements | $7,400 | 100% bonus | $7,400 |
| 27.5-Year Structure | $286,100 | Straight-line | ~$10,400 |
| Total | $325,000 | ~$49,300 |
That's nearly $50,000 in first-year write-offs—instead of spreading that over decades.
Why Single-Family Investors Were Left Out—Until Now
Historically, cost segregation has been a tool for:
- Apartment buildings
- Office towers
- Warehouses and industrial parks
Why? Because traditional studies are:
- Expensive (typically $5,000 to $15,000+)
- Labor-intensive (often requiring an engineering team)
- Built for large-scale assets—not modest rental homes
So if you owned a $300K or $400K rental, the tax benefits couldn't justify the cost of the study.
Rental Write Off: The First Solution Built for Residential Rentals
Rental Write Off is the first IRS-compliant cost segregation platform made specifically for residential homes. We combine automation, remote inspection, and rigorous methodology to deliver:
- Audit-ready reports with full depreciation breakdowns
- A CSV of every asset categorized and valued
- A folder of property images
- A complete methodology file with IRS citations
All for a fraction of the cost of a traditional engineering study.
Typical Client Results
- $38,000 in bonus depreciation on a $350K rental
- $62,000 in year-one write-offs on a duplex purchased for $525K
- $28,000 in deductions for a $300K single-family home
Why This Matters Right Now
| Without Rental Write Off | With Rental Write Off |
|---|---|
| Straight-line depreciation over 27.5 years | 100% depreciation of short-life assets in year 1 |
| Minimal year-one deduction (~$10K–12K) | Year-one write-off of $30K–60K+ |
| No detail or asset-level classification | Full breakdown by component and IRS recovery period |
| Limited benefit from new law | Maximum deduction under the Big Beautiful Bill |
| No audit support | Methodology aligned with IRS Publication 5653 |
Don't Miss This Window
Bonus depreciation won't last forever. Policies change, tax codes shift—but your ability to lock in tens of thousands in tax savings this year is real, right now.
Even if you own just one rental, this isn't just for the big players anymore.
Let's Maximize Your Deductions
We've made cost segregation:
- Fast
- Affordable
- Tailored to residential properties
No engineers. No $10K fees. Just the same high-impact depreciation strategy the pros use, delivered at scale for today's rental property investor.