Mixed-Use
Mixed-use cost segregation: $45K–$200K Year-1 deductions.
Ground-floor retail + upstairs residential each have different cost-seg rules. Done right, you get the best reclassification of both buckets.
Real examples
What mixed-use cost seg looks like in practice.
Nashville, TN
Purchased $2.3M
Retail ground floor + 6 apartments above
Year-1 federal benefit
$148,600
Savannah, GA
Purchased $1.4M
Café + 2 short-term rental units
Year-1 federal benefit
$92,800
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…
- ✓Ground-floor commercial + upper-floor residential properties
- ✓Owner-operators of the commercial unit who also rent the residential portion
Skip it when…
- ×Properties where you can't separately identify the commercial vs. residential basis
Estimate
Run the numbers on your mixed-use.
Pre-set to Mixed-use defaults — adjust price + bracket to match your property.
Estimated Year-1 tax savings
$42,458
on $114,750 of accelerated deductions
5-yr15-yr27.5/39-yr
Study cost
$995
ROI on study
43×
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.