RESIDENTIAL RENTAL STUDY

Typically passed over by large firms, the Residential Rental Property, whether it be an individual condominium or Rental Home, can still benefit from a Cost Segregation Study.

At TMP, we provide the same premium quality product for our commercial clients to our owner's of Residential Rental Property at a fraction of the price.

A cost segregation study is one of the most common tax planning tools for anyone involved with real estate.

Residential Cost segregation studies are most commonly prepared for the allocation or reallocation of building costs to tangible personal property. A building, termed "§ 1250 property", is generally residential rental property (27.5-year) property eligible for straight-line depreciation. Equipment, furniture and fixtures, termed "§ 1245 property", are tangible personal property. Tangible personal property has a shorter recovery period (e.g., 5 or 7 years) and is also eligible for accelerated depreciation (e.g., double declining balance, bonus depreciation). Therefore, a faster depreciation write-off (and tax benefit) can be obtained by allocating property costs to § 1245 property.