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, closing date, and any renovation details. We usually use property photos from the appraisal or rental listing. If those sources do not show an important area or improvement, we may ask for a few additional owner-provided photos.

Yes. We do Form 3115 for eligible look-back studies, and it is included in the $899 price. That lets you catch up missed depreciation without amending prior returns. 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 (the IRS depreciation system that assigns each asset its recovery period). 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 usually use photos from the appraisal or rental listing, supplemented when needed by owner-provided photos, public records, and satellite imagery. No site visit is required.

Send the completed study to your CPA or tax preparer. It includes the schedules and supporting documentation they need, plus Form 3115 for eligible look-back studies. If your CPA has questions, they can contact us directly.

Depreciation recapture (the tax you pay back on prior depreciation when you sell) applies at sale, 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.