Residential rental · 27.5-year property
Cost Segregation for Single-Family Rentals
A single rental house is the property type where owners most often assume a study is not worth it. Sometimes that is right. Increasingly it is not — especially across a portfolio.
When one house is worth studying
The honest threshold used to be around a million dollars of basis. With 100% bonus depreciation permanent, the arithmetic moved. A $400,000 depreciable basis with a 20% reclassification produces roughly $80,000 of accelerated basis, most of which is deductible in the first year rather than spread over 27.5 years. Against a study fee in the low four figures, that works — if you can actually use the deduction, which depends on your participation and other income.
Portfolios change the economics entirely
Owners with ten, thirty or a hundred houses get a different offer. Once the engineering model is built for a floor plan and finish level, it applies across similar properties with modest incremental effort, so per-property pricing drops sharply. Build-to-rent communities are the clearest case: identical units, shared site work and a single set of construction records.
Component takeoff
What we pull out of single-family rentals
Grouped by the recovery period each component lands on. This is representative, not exhaustive — the takeoff on your building will be longer.
- 5Refrigerator, range, dishwasher, microwave, disposal
- 5Washer, dryer and dedicated laundry circuits
- 5Kitchen and bathroom cabinetry, vanities and countertops
- 5Carpet, vinyl plank and other removable flooring
- 5Window blinds, shades and decorative light fixtures
- 5Ceiling fans and dedicated appliance wiring
- 5Security systems, smart locks, thermostats and cameras
- 7Furnishings retained by the owner in a furnished rental
- 7Lawn and maintenance equipment
- 15Driveway, walkways, patios and concrete flatwork
- 15Fencing, gates, retaining walls and decking
- 15Landscaping, irrigation, trees and sod
- 15Exterior and landscape lighting
- 15Swimming pool, spa and pool decking
- 15Outdoor kitchens, fire pits, pergolas and sheds
- 15Site drainage, French drains and grading improvements
- 27.5Foundation, framing, roof and exterior walls
- 27.5Windows, doors and siding
- 27.5HVAC, plumbing and electrical serving the house generally
- 27.5Built-in structural components and permanent fixtures
Questions
How much of the basis usually reclassifies on this property type?
Studies on single-family rentals typically move 14% to 24% of depreciable basis into 5, 7 and 15-year classes. That is a planning range from comparable buildings, not a promise — the number that ends up on your return comes from the actual takeoff.
What documents do you need?
The closing statement, the current depreciation schedule and the property address at minimum. Construction records, drawings, pay applications and change orders make the work more precise and often cheaper.
I bought this several years ago. Is it too late?
No. As long as you still own it and placed it in service after 1986, a look-back study captures every missed deduction and brings it forward on the current return via Form 3115. No amended returns.
The study is one piece. We can handle the rest of the return.
Deprecio is part of the Shurek Accounting & Tax family of brands. If you want the study and the tax work under one roof — the return, the Form 3115, entity structure, quarterly estimates, multi-state filings — that is a single engagement, not a hand-off between two firms.
No-cost feasibility review
Find out what your building is hiding.
A feasibility review is free and takes about twenty minutes. Bring the closing statement and the depreciation schedule; we will tell you plainly whether a study pays for itself.