Much easier on new construction than an existing building as long as you have good receipts along the way for building components.

As a CPA, why would you not also recommend she divide up the component costs of the renovation(ie cost of cabinets, floors, etc) into separate depreciable components, getting 80-90% of the benefit of a renovation cost seg without the cost?

With $1.2M+ in properties and significant rehab, the depreciation benefit could be substantial - but so is the audit exposure if you get it wrong.The issue isn't that you'll be "no where as thorough" - it's that the IRS prefers engineering-based studies with detailed component breakdowns.

I don’t think it’s one answer as with many things it depends. 5% is probably to high for a fully updated property taking into consideration the major components.

Look at the major components: roofs, siding, kitchens, baths, furnaces and ac units.

Yes,  they measured all components of properties and split them into different depreciation categories.  

Let’s dive into it.Potential consequences of working with an unqualified firm:Missed opportunities: Firms that are inexperienced may overlook numerous components that are eligible to be reclassified as they lack the knowledge or don’t perform a thorough analysis.This reduces the amount of potential deductions which also reduces your potential tax savings!

Cost seg is looking at the structural components of the property that come with purchase, not at the items you buy after you acquire the property.

A comp on the other side of town is 305k.

Every component of a house comes with a design life.