Duplex
Duplex cost segregation: $18K–$55K Year-1 deductions.
House-hackers: only the rental side gets cost-segregated. Owner-occupied half stays on personal residence rules.
Real examples
What duplex cost seg looks like in practice.
Austin, TX
Purchased $640K
House-hacked, 50% basis allocated to rental side
Year-1 federal benefit
$48,200
Denver, CO
Purchased $725K
Pure rental duplex, 1990s build
Year-1 federal benefit
$54,800
Estimates assume 37% federal bracket and full first-year usability of the loss (active income offset or REPS). Your actual benefit varies with bracket, basis allocation, and CPA's treatment.
Good fit when…
- ✓Pure-rental duplexes (both units rented out)
- ✓Owner-occupied house-hackers, but only the rental-side basis is eligible
- ✓Duplexes with separate mechanicals per unit (more 5/15-yr property)
Skip it when…
- ×Owner-occupied duplexes where you live in both halves
- ×Duplexes under $250K basis where the math gets thin
Estimate
Run the numbers on your duplex.
Pre-set to Duplex defaults — adjust price + bracket to match your property.
Estimated Year-1 tax savings
$35,520
on $96,000 of accelerated deductions
5-yr15-yr27.5/39-yr
Study cost
$995
ROI on study
36×
Delivery
< 1 hour
Estimate based on RSMeans 2024 cost data and IRC §168(k). Your actual result varies with property age, condition, and basis allocation.