Turn your rental into a tax-savings machine.
Cost segregation studies for single-family rentals, short-term rentals, duplexes, triplexes, and 4-plex properties nationwide. Fixed fees. Real reports. A real accounting firm.
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 recommendedIf 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.
- Supporting documentation
- Methodology explanations
- Technical help answering report questions
- Support for your representative
- IRS representation is separate
- One flat fee per report
A real residential cost segregation report
This is a redacted example of a standard residential report. Read it in your browser or download the PDF — no email required.
Single-family rental cost segregation study
A redacted example of a standard report — itemized asset classifications, estimated component costs, and recovery periods.
- Property summary and placed-in-service documentation
- 5-, 7-, and 15-year asset reclassification detail
- Methodology narrative aligned with IRS ATG
- Estimated component costs and recovery periods
IRS Form 3115 preparation
Form 3115 is a request to change an accounting method. For some cost segregation look-back studies, it is used to claim previously missed depreciation. Marlow Accounting offers Form 3115 preparation upon request, subject to a separate engagement and fee. Purchasing a cost segregation study does not automatically include Form 3115 preparation, review of prior tax returns, depreciation implementation, tax return preparation, tax planning, or a determination of whether Form 3115 is necessary. Unless Marlow Accounting is separately engaged for those services, the taxpayer and their tax professional are responsible for determining the appropriate tax treatment.
- First Form 3115
- $1,500
- Each additional Form 3115
- $1,100
- Second, third, and subsequent forms
Pricing is subject to change if the property in question has more than 10 subassets (individual depreciable components). This may result in additional costs.
Documents needed for Form 3115
- Two years of previous tax returns — personal and business.
- Depreciation schedules as prepared by your previous accountant.
- A copy of the cost segregation report for the property in question. If the study was obtained through Marlow Accounting, we can provide the completed report.
These are the baseline documents. Additional documents may be requested if necessary.
TaxDome uploads only
Upload these documents only through our secure TaxDome client portal — not through this website form or as email attachments. If you don't have portal access yet, email cory@marlowaccounting.com and include the first name, last name, phone number, and email address of the person who needs access. Our team will set up your account and follow up with login instructions.
After uploading, you MUST send us a message in TaxDome and/or email cory@marlowaccounting.com to let us know your documents were dropped off. If you do not notify us, we will not know the documents were uploaded.
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.
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.
Client Improvements
Leasehold or tenant improvements to an existing building.
Client Improvements or New Construction
Ground-up construction, major renovations, or large additions.
Where the accelerated deductions come from
On many residential rentals, 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 can mean a large first-year deduction and a 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.
Our cost segregation study methodology
Our cost segregation studies use a data-driven approach based on thousands of previously completed engineering studies. Using information about your property — including its building type, location, size, and other characteristics — specialized software compares your property against similar buildings to identify assets that may qualify for accelerated depreciation.
Reports use a Detailed Engineering Cost Estimate methodology, combined with modeling and sampling, and draw on industry-standard construction cost databases such as RSMeans and Marshall & Swift.
The analysis estimates the allocation of property costs into different depreciation categories, including:
5-year property
Certain equipment, fixtures, and other qualifying personal property.
15-year property
Qualifying land improvements, such as parking lots, sidewalks, and landscaping.
27.5- or 39-year property
The remaining building components, depending on the property's use.
Marlow Accounting coordinates each study. The technical reports are generated with specialized software and then go through a manual quality-control review by third-party cost segregation specialists. During that review, available property information may be verified using public records, property databases, real estate listings, and photographs.
The result is a customized cost segregation report that identifies potential depreciation deductions and opportunities to reduce your tax liability.
This methodology uses historical engineering data and property-specific information rather than an on-site engineering inspection. Standard studies are completed remotely and do not require an on-site inspection — though if optional audit support was purchased and an IRS audit occurs, an inspection may become necessary depending on the circumstances.
Every report documents how each classification was determined, using a methodology aligned with the IRS Audit Techniques Guide. Standard reports do not automatically include an individual engineer's signature; if you specifically require a professional signature, let us know before proceeding so we can discuss the request.
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.
Ready to request a quote for your rental?
A quote for our fee will be provided within one week of submitting the completed property information form. We serve rental owners anywhere in the U.S.