Cost Segregation FAQ

A cost segregation study is an engineering-based analysis that identifies components of your rental property that can be depreciated faster than the standard 27.5 years. Items like flooring, cabinetry, appliances, landscaping, and certain plumbing and electrical components can be reclassified into 5-, 7-, or 15-year recovery periods, giving you significantly larger tax deductions in the early years of ownership.

We support residential rental properties up to 4 units: single-family homes, condos, townhouses, duplexes, triplexes, fourplexes, short-term rentals (Airbnb/VRBO), and mobile homes. The property must be used for rental or business purposes.

Savings depend on your property's cost basis, how the property is used, and your marginal tax rate. For a $400,000 single-family rental in a 32% tax bracket, it's common to see an additional $10,000–$15,000 of first-year tax savings compared to straight-line depreciation. Use the free calculator on the home page for a property-specific estimate.

You'll need the property address, purchase price and closing date, interior and exterior photos, and any renovation details. Photos are the single most impactful thing you can provide. Clear photos of each room, flooring, countertops, fixtures, cabinetry, landscaping, and upgrades let our engineers accurately classify higher-value short-life assets for bigger deductions.

Yes. A look-back study provides the data your CPA or tax software needs to file IRS Form 3115 and claim all the accelerated depreciation you missed in previous years as a single catch-up deduction on this year's tax return. No need to amend prior returns. RentalWriteOff does not file Form 3115 — we provide the supporting report. Learn more in our guide to look-back studies.

The intake takes about 5 minutes. Completed reports are delivered within 2 business days after submission and payment.

Yes. Every report follows IRS guidelines and MACRS classification rules. Each study includes audit support: if you're audited, we provide supporting documentation and respond to reasonable inquiries from the taxing authority regarding our methodology and calculations.

No. Our process is fully remote. We use the photos and documentation you provide, combined with public records and satellite imagery. No site visit required, which is a big part of why we can deliver in 2 business days for a flat fee.

Send the completed report to your CPA or tax preparer. It includes the reclassified asset schedules and supporting documentation they need to update your depreciation on Form 4562 or to prepare Form 3115 for a look-back study. RentalWriteOff does not prepare or file tax returns — we provide the engineering report that makes it easy for your tax professional or software to do so. If your CPA isn't familiar with cost segregation, the report is self-explanatory — or they can contact us directly with questions.

Depreciation recapture applies when you sell, but the upfront tax savings from a cost segregation study typically outweigh recapture when you factor in the time value of money. Many investors also use 1031 exchanges to defer both capital gains and recapture indefinitely by rolling proceeds into a like-kind replacement property.

Pricing is a flat fee per property, regardless of property value or complexity. No hidden fees, no complex quotes. See current pricing on the home page.

Use the savings calculator on the home page to estimate your deduction, then click Start My Study to submit your property. You'll have your report in 2 business days. Questions? Email support@rentalwriteoff.com or call 307-271-8741.