It should extend much higher.If you were buying a suburban rental on a quarter acre in the midwest, land cost would be about 15% of total cost. 

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?

Costs are reasonable and tax deductible as well.

@Ryan Knapp The cost and tax savings differences could be due to the type of study.

Otherwise component costs must still be estimated.

Cost segregation can be an effective way to accelerate depreciation and reduce taxes, but it’s important to work with a firm that has strong experience in your local market.

The cost of the study is $5K.

Additionally, the IRS has recently increased the scrutiny regarding cost segregation studies.

There are a lot of factors to consider when get a cost seg study to determine if the benefits outweigh the costs.

Have you already obtained a detailed cost/benefit analysis quote for a study?