Cost segregation studies for duplexes, triplexes, fourplexes, and small apartment buildings (2-10 units). Reclassify 25-40% of building basis. Studies from $2,750.
Small multifamily properties (2-10 units) are ideal candidates for cost segregation because they contain more reclassifiable components per dollar of building value. Each unit has its own kitchen, bathroom, HVAC system, flooring, and fixtures, all of which qualify as 5-year personal property. This results in reclassification rates of 25-40%.
A $500,000 fourplex with 30% reclassification can generate approximately $44,400 in first-year tax savings at a 37% tax bracket. Studies for 2-10 unit properties start at $2,750.