Bonus depreciation can be a powerful lever in real estate planning—but only when the underlying classifications are defensible and tied to the placed-in-service timeline. For residential rental clients, cost segregation can accelerate depreciation by reclassifying qualifying components into shorter-life property.
RentalWriteOff delivers engineering-style rigor in a cost segregation documentation package—typically in 2 business days, for under $800, with about 5 minutes of client time. CPAs can submit through our CPA Portal, partnership programs are available for firms, and audit support is included with every report we deliver.
What CPAs are doing when they pair bonus depreciation with cost segregation
From a planning standpoint, the approach works because:
- A cost segregation study reclassifies components into shorter recovery periods (where supported).
- Bonus depreciation may apply to qualifying shorter-life property depending on the year placed in service and applicable tax rules.
- The client’s depreciation profile becomes front-loaded, improving near-term cash flow (when appropriate for the client’s tax situation).
The CPA’s role is to ensure the approach is:
- supported by documentation
- timed correctly (placed-in-service is key)
- aligned with the client’s income profile and long-term goals
RentalWriteOff supports this workflow by providing bonus depreciation applicability analysis as part of the documentation package.
The cornerstone: placed-in-service drives applicability
For bonus depreciation planning, date placed in service is critical. It anchors:
- timing of depreciation
- eligibility planning
- audit defensibility
For residential rentals, “placed in service” generally means the property is ready and available for rent and is held out for rental use (facts and circumstances matter).
RentalWriteOff collects Date Placed in Service as part of the intake and includes bonus depreciation applicability analysis in the final deliverable.
Asset types that often drive accelerated depreciation in residential rentals
While every property differs, residential rentals may include components that can fall into shorter-life categories such as:
- appliances and equipment (especially in furnished rentals)
- certain interior finish components (based on facts and scope)
- site improvements (walkways, fencing, landscaping, exterior lighting)
- specialized electrical/plumbing serving specific assets
CPA takeaway: furnished and renovated properties often have more opportunity, and supporting documents materially improve defensibility.
Timing scenarios CPAs see most often
Scenario 1: Newly acquired rental
A study is often most impactful when paired with acquisition-year planning and placed-in-service timing.
Scenario 2: Renovated rental
Renovations increase basis and can expand shorter-life components. Receipts and invoices can strengthen classification support.
Scenario 3: Late study on an already-owned property
A study can still provide benefit even after depreciation has started. If adjustments are needed, the CPA may consider Form 3115 for catch-up treatment where appropriate.
Important note: RentalWriteOff does not prepare or file Form 3115. We provide the documentation package; the CPA handles method change filings.
How RentalWriteOff supports CPA bonus depreciation planning
RentalWriteOff provides bonus depreciation applicability analysis so CPAs can:
- assess planning value quickly
- incorporate depreciation changes into projections
- communicate results clearly to clients
And because the turnaround is typically 2 business days with a lightweight intake, CPAs can recommend this service without creating bottlenecks in busy season.
Audit support is included with every report we deliver, providing additional confidence if questions arise later.
What we need (5-minute intake)
We only need basic property information (property address, property type, placed-in-service date, cost basis/purchase price, and whether the property is furnished), plus any supporting documents the client has available.
CPA Portal intake is even simpler: owner name (individual or LLC), property address, purchase price/cost basis, and date placed in service.
CPA Portal: rentalwriteoff.com/cpa-portal
Supporting documentation (optional, but recommended)
All supporting documents are optional. Providing more documentation improves rigor, documentation depth, and audit defensibility.
Recommended (improves rigor and defensibility)
- Appraisal Report (recommended)
- Closing Disclosure or Settlement Statement
- Renovation Receipts & Invoices
- Property Survey or Site Plan
- Property Photos (interior & exterior) — exclude photos from the rental listing
FAQs for CPAs
Does RentalWriteOff determine whether bonus depreciation applies?
RentalWriteOff provides bonus depreciation applicability analysis as part of the documentation package based on placed-in-service information and classification outputs. The CPA controls elections and the final filing treatment.
Does RentalWriteOff file Form 3115?
No. If a catch-up adjustment is needed, Form 3115 is prepared and filed by the CPA.
Is audit support included?
Yes. Audit support is included with every report we deliver.
Closing
If you’re looking to integrate cost segregation into planning for residential rental clients—without adding workload—RentalWriteOff provides engineering-style rigor in a documentation-first package with a fast turnaround, accessible pricing, bonus depreciation applicability analysis, and audit support included.
CPA Portal and partnership programs
RentalWriteOff is built for CPA workflows. CPAs can submit on behalf of clients through our CPA Portal, receive deliverables quickly, and scale cost segregation as part of tax planning through generous partnership programs.
Reports are typically delivered in 2 business days, bonus depreciation applicability is included, and audit support is included with every report we deliver.