Historically, the answer was often no. Traditional cost segregation studies were performed by teams of engineers and accountants, costing anywhere from $5,000 to $15,000. For a single-family rental, the high fee would often negate the tax benefits. This meant a powerful tax-saving strategy was reserved almost exclusively for large commercial property owners.
The Game Has Changed
Our proprietary platform has completely changed the equation. By automating the most complex parts of the analysis, we can deliver a detailed, robust, and IRS-compliant cost segregation study for a fraction of the traditional cost. You can unlock tax savings that were previously out of reach.
Let's Look at the Math
Imagine you buy a single-family rental for $400,000. The land is valued at $80,000, leaving a depreciable basis of $320,000. Normally, you'd depreciate this over 27.5 years, giving you a deduction of about $11,636 per year. With our cost segregation study, we might identify that 20% of the building's value ($64,000) can be reclassified as 5-year and 15-year property. With bonus depreciation, you could potentially deduct that entire $64,000 in the first year. If you're in a 24% tax bracket, that's an immediate tax savings of over $15,000—a massive return on investment.