Cost segregation case study CS-06
New-build townhouse with high-end finishes
A cost segregation study on a 2026 new-build townhouse reclassified 25.0% of the depreciable basis, including 21.5% in 5-year property from high-end finishes, producing about $210,000 of accelerated depreciation through 2026.
Property profile
- Property type
- Townhouse
- Region
- Southeast
- Year built
- 2026
- Building size
- ~2,400 SF
- Site size
- ~3,500 SF
- Study type
- Acquisition
- Tax year
- 2026
Study outcome
- Total reclassified
- 25.0%
- 5-year property
- 21.5%
- 15-year property
- 3.5%
- Bonus rate
- 100%
- Accelerated depreciation
- ~$210,000 through 2026
The property
A newly built townhouse purchased as a rental.
What we found
Townhomes usually have little site work, often just a driveway and some landscaping on a small lot, and this one was typical at 3.5% in 15-year property. The 5-year share was well above average because of the finishes: luxury vinyl plank throughout, high-end appliances, decorative lighting, and extensive millwork and cabinetry.