Case Studies: Rental Property

Interesting in viewing cost segregation case studies for rental properties? You’ve come to the right place. Read below to learn how vacation homes, Airbnbs, and vacation rentals can benefit from this powerful tax tool.

Rental property owners, ranging from single-family home investors to large-scale apartment developers, can significantly improve their after-tax returns by accelerating the depreciation of their real estate assets. Engineered Tax Services helps these investors shift from the standard 27.5-year residential depreciation schedule to much shorter 5, 7, and 15-year recovery periods through high-quality cost segregation. By identifying personal property and land improvements—such as kitchen appliances, specialized flooring, and site landscaping—ETS front-loads tax deductions to create immediate cash flow. This influx of capital allows owners to scale their portfolios faster, fund essential repairs, or offset other passive income, transforming a long-term deferral into immediate financial growth.

Rental Property Case Studies

A typical rental property contains a wealth of assets that qualify for rapid write-offs, which Engineered Tax Servicesmeticulously documents using an engineering-based approach. For instance, in a $500,000 vacation rental, ETS can often identify over $130,000 in first-year depreciation, providing massive tax relief compared to the minimal deductions offered by straight-line methods. Furthermore, for multifamily or larger rental property projects, Engineered Tax Servicesidentifies additional savings through the 45L Energy Efficient Home Credit or 179D deductions for buildings four stories or higher. These results highlight how ETS provides the defensible data and technical certification necessary to maximize Net Present Value and ensure long-term wealth preservation for residential investors across the country.