Cost Segregation for Condos and Duplexes: Owner Buying Guide

For a condo, identify the ownership boundary

Collect the deed, association documents, unit description and special-assessment records. A photograph of a pool or elevator does not prove the unit owner owns depreciable basis in that asset. Ask the preparer and study team to establish what costs and ownership interests are actually included.

Keep assessments and unit work distinct

A special assessment, an association expense and a direct renovation invoice are not interchangeable evidence. Obtain a description of the project and the owner’s obligation. List unit-level flooring, appliances and later improvements separately. Avoid adding the same underlying project through both an assessment and another cost schedule.

For a duplex, separate uses and vintages

Identify whether both units are rented, one is personal, or a unit changes use. Shared roofs and site work may need allocation, while an appliance can serve one unit. If one unit was renovated years after purchase, preserve the dates and source costs separately rather than averaging the entire property into one assumed condition.

Use fee economics after scope is clear

The published minimum can matter on a small unit, but a low fee cannot solve an ownership or basis error. Compare proposals for the same property boundaries, evidence and deliverables. A small unit with clear records may be straightforward; one with uncertain common-area interests needs those questions resolved before estimating deductions.

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