Looking for real examples of cost segregation analysis breakdowns for single family rental homes?
Hey fellow landlords, I've been researching cost segregation for my two rental properties (single family homes) and I'm struggling to find concrete examples showing how specific items get categorized. I need to see how actual components get assigned to the 5-year, 7-year, and 15-year recovery periods. Does anyone have examples they can share that show real breakdowns? I'm particularly interested in seeing how things like flooring, light fixtures, countertops, and appliances get classified. My CPA mentioned this could save me thousands in the next few years but I want to understand what I'm getting into before spending money on a professional analysis. Any real-world examples or resources would be super helpful!
20 comments


Kendrick Webb
I've been through the cost segregation process for several rental properties. The general breakdown works like this: Items in the 5-year category typically include carpeting, appliances (refrigerators, stoves, washers/dryers), and certain furniture/fixtures. The 7-year property usually includes office furniture and certain equipment. The 15-year property encompasses land improvements like driveways, fencing, and landscaping features that aren't part of the building structure. For a single-family home, your biggest savings typically come from reclassifying components that would otherwise be depreciated over 27.5 years. For example, cabinets and countertops can often be classified as 5-year property rather than part of the building structure. Same with specialized electrical systems, certain plumbing components, and flooring that's not permanently affixed.
0 coins
Norman Fraser
•Thanks for the overview! When you did your properties, did you get an actual report that itemized everything? Like did it say "kitchen countertops - $3,800 - 5 year category" or something similar? I'm trying to understand how detailed these analyses get and what percentage of a typical single family home can actually be segregated into the accelerated depreciation categories.
0 coins
Kendrick Webb
•Yes, the report is extremely detailed. They break down every component with dollar values assigned. For example, my last report listed "Kitchen granite countertops - $4,250 - 5-year property" and "Vinyl plank flooring (throughout) - $6,780 - 5-year property." In my experience with single-family homes, we typically see about 25-30% of the property value shifted to accelerated depreciation categories. This varies based on the home's features and finishes. Higher-end homes with more custom features often yield better segregation percentages. The analysis also includes photos and specific justifications for each classification to support you in case of an audit.
0 coins
Hattie Carson
After struggling with my rental property tax strategy for years, I finally tried taxr.ai (https://taxr.ai) for help with cost segregation. Their system analyzed my property photos and documentation and showed me exactly how to break down my single-family rental home components. They categorized my vinyl plank flooring, quartz countertops, and HVAC system in the 5-year bucket, saving me thousands in the first year alone. The report even showed how my landscaping and driveway qualified for 15-year treatment instead of 27.5 years.
0 coins
Destiny Bryant
•How much detail does their report provide? I'm concerned about getting something that won't stand up if I'm audited. Does it include justifications for why each item qualifies for the category they put it in?
0 coins
Dyllan Nantx
•I've heard mixed things about automated services for cost segregation. How can you be sure they're following the latest IRS guidelines? I thought you needed an engineer to physically inspect the property for a legitimate cost segregation study?
0 coins
Hattie Carson
•Their report is extremely detailed - it breaks down every component with specific values and includes photos with annotations. Each classification comes with tax code references and precedent cases that support the categorization. They actually have engineers review everything - you upload photos and documentation, their system does initial analysis, but then human experts finalize everything. They explained that while physical inspections were once required, advances in technology and IRS acceptance of properly documented virtual assessments have made this approach legitimate. They even provide audit defense support if needed.
0 coins
Dyllan Nantx
I was skeptical about using an online service for something as technical as cost segregation, but I tried taxr.ai after seeing it mentioned here. Surprisingly impressed! Their engineer identified items I never would have thought qualified for accelerated depreciation. My single-family rental had about 28% of the value shifted to 5, 7, and 15-year property. The biggest items were the kitchen (cabinets, appliances, countertops), specialty lighting, flooring, and some bathroom fixtures. Their documentation is incredibly thorough and they explained every classification in terms even I could understand.
0 coins
TillyCombatwarrior
For anyone struggling to get answers from the IRS about cost segregation or other tax matters, I highly recommend checking out Claimyr (https://claimyr.com). After waiting on hold with the IRS for hours trying to clarify some cost segregation rules, I discovered their service. They got me connected to an actual IRS representative in under 45 minutes! You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. The agent was able to answer my questions about documentation requirements for cost segregation studies and what to expect if the deductions get questioned.
0 coins
Anna Xian
•Wait, how does this actually work? You pay them and they somehow get you through the IRS phone tree faster? I've literally spent entire afternoons on hold only to have the call dropped.
0 coins
Dyllan Nantx
•This sounds too good to be true. The IRS is notoriously understaffed and their phone systems are a nightmare. How could a third-party service possibly get you through faster than everyone else? Seems like a scam to me.
0 coins
TillyCombatwarrior
•They use an automated system that navigates the IRS phone tree and waits on hold for you. When they finally get through to a representative, you get a call to connect with the agent. It's completely legitimate - they're essentially just doing the waiting for you. The service works because they have technology that continuously redials and navigates the complicated IRS menu options until they reach a human. Then they immediately transfer the call to you. It's not about cutting the line - it's about having a system that can persistently try to get through without you having to sit there listening to hold music for hours.
0 coins
Dyllan Nantx
I need to publicly eat my words about Claimyr. After dismissing it as too good to be true, I tried it out of desperation when I needed clarification on my cost segregation study documentation. I had specific questions about how to handle my built-in cabinetry. The service actually worked! Got connected to an IRS agent in about 30 minutes when I had previously spent 3+ hours on multiple days trying to get through. The agent confirmed my approach to categorizing my custom cabinetry as 5-year property was acceptable with proper documentation. Saved me hours of frustration and potentially thousands in tax benefits.
0 coins
Jungleboo Soletrain
Here's an actual breakdown from my cost segregation study on a single-family rental I purchased last year for $425,000: 5-year property (~$48,200): - Kitchen appliances: $7,500 - Carpeting: $5,800 - Vinyl flooring: $4,200 - Window treatments: $3,200 - Cabinetry (kitchen/bath): $14,000 - Countertops: $6,500 - Light fixtures: $4,800 - Security system: $2,200 15-year property (~$35,000): - Driveway: $12,000 - Landscaping: $8,500 - Fencing: $7,300 - Outdoor lighting: $2,800 - Irrigation system: $4,400 The rest (~$341,800) remained as 27.5-year residential property. The first-year tax savings were significant compared to traditional depreciation!
0 coins
Rajan Walker
•This is exactly what I was looking for! Did you use a local firm or a national company for the analysis? And roughly how much did it cost? Trying to figure out if it's worth it for my $380k rental.
0 coins
Jungleboo Soletrain
•I used a regional firm that specializes in investment properties. The cost was $3,500, which seemed steep initially, but the first-year tax savings were over $9,000 compared to traditional depreciation, so it paid for itself quickly. For your $380k property, I'd expect to pay $2,800-3,500 depending on the property complexity. Most firms calculate that if your property value (excluding land) is above $300k, cost segregation makes financial sense. Also worth noting that some CPAs offer this as part of their services rather than requiring a separate engineering firm, which can reduce costs. The key is finding someone who really understands the nuances of real estate tax law.
0 coins
Nadia Zaldivar
Has anyone used cost segregation for a newly constructed single-family rental? I'm building a rental property and wondering if I should track construction costs by category from the beginning instead of doing a study later.
0 coins
Lukas Fitzgerald
•Absolutely track everything separately during construction! This is the ideal scenario. Have your contractor break out costs for electrical, plumbing, HVAC, flooring, cabinetry, etc. on their invoices. I made the mistake of not doing this with my new build and ended up paying for a cost segregation study anyway because the lump sum contractor price didn't give me the detail needed for tax purposes. Save yourself the $3k+ for the study and just document properly from the start.
0 coins
Nadia Zaldivar
•Thanks for the advice! I'll talk to my contractor about providing itemized invoices for everything. Should I also be taking photos during different construction phases to document what's going into walls and floors before they're covered up?
0 coins
Samuel Robinson
Yes, absolutely document with photos during construction! Take detailed pictures of electrical runs, plumbing rough-ins, HVAC ductwork, and specialty systems before drywall goes up. This visual documentation becomes invaluable for supporting your depreciation categories later. I'd also recommend keeping a detailed construction log noting dates and costs for each phase. When you install items like built-in appliances, custom lighting, or specialty flooring, photograph the installation process and keep all receipts with model numbers and specifications. One thing I learned the hard way - make sure your contractor understands you need separate line items for things like cabinet hardware, countertop installation, electrical fixtures, and flooring materials versus labor. The IRS likes to see clear distinctions between what qualifies for accelerated depreciation versus what's considered part of the building structure. Your future self (and your tax preparer) will thank you for this level of documentation. It's so much easier than trying to reconstruct everything after the fact!
0 coins