Cost segregation study can be a great way to unlock tax savings, even for properties you’ve owned a while.

It sounds like you’d definitely benefit from doing a study since your wife qualifies as a real estate professional.

This is relying on a 35% expense ratio, which I believe many would argue is conservative and should be higher.Round Number Case Study:$12,000 Monthly Collected rent$4,200 Monthly Expenses (35% Assumption)$7,800 NOI$7,800/$500,000 = 15.6% cap rate

Life/safety obviously should have no limit.

Some correctionBonus depreciation is now 100%Are you sure you got a cost segregation study from the company you provided a link to(KBKG)?

I have been looking at Cost Segrigation and 100% bonus depreication.Has anyone ever done one for a single family home portfolio?How much was it?Was it worth it?

Quote from @Sean O'Keefe: Quote from @Damon Silver: We're looking to do a cost segregation study on our duplex in Corvallis. 

Since you bought the property in December 2024, your components fall under the old schedule, meaning 40% bonus depreciation applies in 2025.You’re right that building structure doesn’t qualify, but items from a cost segregation study (like appliances, flooring, furniture, and landscaping) still do, just at the 40% rate.So even though your placed-in-service date is May 2025, the purchase date controls eligibility for 100%.

I’d recommend learning how to accurately estimate rehab costs, study local ARVs (After Repair Values), and build relationships with reliable contractors and agents who understand investment properties.

You can take bonus depreciation on any property that has assets that qualify.So to answer your question, yes, you can take bonus depreciation on components of a house that is used as a MTR.However, what you may want to determine from a conversation with an accountant is whether the activity will be treated as active or passive.The next question would be, even if you can do a cost segregation study, would the added depreciation from bonus depreciation be beneficial.