Residential Cost Segregation

Turn your rental into a tax-savings machine.

Engineering-based cost segregation studies for single-family rentals, short-term rentals, duplexes, triplexes, and 4-plex properties nationwide. Fixed fees. Real reports. Real team.

Who this is for

Residential owners who benefit most

  • Short-term rental / Airbnb owners actively managing the property
  • Long-term buy-and-hold single-family investors
  • Owners of duplex, triplex, and 4-plex properties (still residential for tax purposes)
  • Real estate professionals materially participating in rental activity
  • Owners who recently built or renovated a residential rental — full construction basis is fair game
  • Owners of properties placed in service in prior years — look-back studies capture missed depreciation

Add Audit Support — $300

Highly recommended

If it's ever questioned, the deduction survives on documentation — the engineering methodology, the asset-by-asset breakdown, the source records, and a clear written answer to the examiner's letter. Without that, the reclassification can be disallowed even when it was correct.

  • Full methodology narrative on demand
  • Written responses to IRS information requests
  • Direct IRS correspondence when we represent you
  • Coordination with your own tax pro
  • Re-verification against the ATG
  • No hourly meter, life of the study
What Audit Support covers in full
Sample report

A real residential cost segregation report

This is a redacted example of the exact deliverable you'll receive. Read it in your browser or download the PDF — no email required.

Warm evening photograph of a residential home exterior
Sample Report · Residential

Single-family rental cost segregation study

A redacted example of the exact deliverable you'll receive — engineering-based, IRS-compliant, and ready for your CPA.

  • Property summary and placed-in-service documentation
  • 5-, 7-, and 15-year asset reclassification detail
  • Engineering methodology narrative aligned with IRS ATG
  • First-year and multi-year depreciation schedules
Step 01 · Get started

Start your residential questionnaire

Pick the form that matches your property. The Rental Home questionnaire can be filled out online — everything else downloads as an Excel file to email back.

Residential · 1–4 units

Single-family, condos, small multi-family, and modular residential.

3 forms

Rental Home (Single-family / 2–4plex / Townhome)

Long-term or short-term rental homes, duplex, triplex, or 4-plex.

Residential Condo

Individually-owned residential condominium units held for rental.

Modular or Builder's Package Home

Manufactured, modular, or builder's package residential properties.

Improvements & New Construction

Leasehold improvements, major renovations, and ground-up builds.

2 forms

Client Improvements

Leasehold or tenant improvements to an existing building.

Client Improvements or New Construction

Ground-up construction, major renovations, or large additions.

Not sure which one? Email us the property type at cory@marlowaccounting.com and we'll send the right form.
What the study finds

Where the accelerated deductions come from

On a typical residential rental, 20–35% of the depreciable basis reclassifies out of 27.5-year building life. Cabinetry, appliances, carpet and vinyl flooring, decorative lighting, dedicated electrical for kitchen and laundry, and specialty plumbing typically fall into 5-year property.

Site improvements — driveways, walkways, landscaping, exterior lighting, fencing, retaining walls — reclassify to 15-year land improvements. Combined with current bonus depreciation rates, that means a large first-year deduction and a materially lower tax bill.

Short-term rentals get an additional boost: when average stays are 7 days or less and the owner materially participates, the rental is often treated as non-passive — meaning the accelerated depreciation can offset W-2 income, business income, or other active income streams.

Checklist

What to send us

Closing statement or construction ledger

HUD-1 / ALTA settlement statement for a purchase, or itemized construction costs for new builds.

Property address + placed-in-service date

The date the property was ready and available for rent.

Photos or a virtual walkthrough

Interior and exterior — a short video works. Blueprints if you have them.

Depreciation schedule (if any)

Your CPA's current depreciation schedule if the property has been in service more than one year.

FAQ

Residential cost seg questions

Looking at a bigger property? See the commercial page.

Ready to run the numbers on your rental?

Send us the address and closing statement — we'll come back with a fixed-fee quote within one business day, anywhere in the U.S.