Multifamily (2-4 units)
Multifamily cost segregation: $25K–$80K Year-1 deductions.
Each additional unit multiplies the kitchen + bath + HVAC count, and those are the densest 5-yr personal-property categories.
Real examples
What multifamily cost seg looks like in practice.
Atlanta, GA
Purchased $680K
Triplex, recent appliance refresh
Year-1 federal benefit
$54,200
Dallas, TX
Purchased $840K
Quadplex with separate utilities per unit
Year-1 federal benefit
$68,400
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…
- ✓2-4 unit properties with separate utilities per unit (more 5-yr property)
- ✓Owner-operators with active income or REPS
- ✓Owners considering Form 3115 lookback on properties bought 2+ years ago
Skip it when…
- ×Units with shared mechanicals (single boiler/HVAC) — reclassification drops
Estimate
Run the numbers on your multifamily.
Pre-set to Multifamily 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.