Cost segregation case study CS-01
Classic 1930s brick walk-up with six units
A cost segregation study on a 1936 six-unit brick apartment building reclassified 24.8% of the depreciable basis into 5- and 15-year property by adjusting each component for its actual condition, producing about $267,000 of accelerated depreciation through 2025.
Property profile
- Property type
- Small multifamily, 6 units
- Region
- Upper Midwest
- Year built
- 1936
- Building size
- ~3,900 SF
- Site size
- ~8,000 SF
- Study type
- Acquisition
- Tax year
- 2025
Study outcome
- Total reclassified
- 24.8%
- 5-year property
- 18.2%
- 15-year property
- 6.6%
- Bonus rate
- 100%
- Accelerated depreciation
- ~$267,000 through 2025
The property
A three-story brick apartment building with six units, built in 1936.
What we found
Condition varied widely across the building. Some units had recent remodels, while finishes and fixtures elsewhere showed decades of wear. We adjusted each component for its actual physical condition instead of applying one age to the whole building, so renovated finishes carried the value they actually hold.