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Cost Segregation for Small Rental Properties
Compare cost segregation for single-family rentals, duplexes, triplexes and fourplexes. Evaluate study fees, usable deductions and property records.
A single rental home or duplex deserves a clear economic decision before a study is commissioned. Compare the fee and implementation costs with the timing benefit your preparer expects you can actually use. A large reclassified amount does not, by itself, establish that a small-property study pays for itself.
$1 per square foot$2,000 minimum per property
Start with depreciable basis, not the listing price
Separate land from building costs and reconcile the acquisition to closing records. Identify later improvements and separately purchased furnishings. If the home was converted from personal use, provide the conversion history to the preparer rather than assuming the original purchase price is the depreciation basis.
Compare the complete cost with a usable benefit
Stratum cost segregation studies cost $1 per square foot, with a $2,000 minimum per property. Confirm current pricing and scope. For a lower-basis property, the fee can materially affect the decision. Ask the preparer to compare depreciation with and without the study, the year the deduction can be used, implementation costs, state differences and anticipated sale consequences. A fixed minimum purchase price is not a substitute for that calculation.
Choose a workflow that fits the records
A straightforward home with complete records may need a different inspection and review plan from a heavily remodeled fourplex. Compare document-only, virtual and on-site proposals on the actual evidence collected, treatment of missing costs and review responsibilities. A cheaper proposal may fit the property; ask what is included before making a fee-only decision.
Know when to defer a study
If costs cannot be reconciled, the expected deduction cannot currently be used, or a near-term sale changes the economics, resolve those issues first. Ask whether a later study or another approach better fits the property. Keep the existing schedule so the preparer can evaluate timing without losing the original asset history.
Explore your property question
Discuss your property
Bring the property type, acquisition and placed-in-service dates, approximate basis, improvement history and existing depreciation schedule. AE Tax Advisors hosts discovery; confirm the study scope and any separately engaged tax implementation.
Book a Cost Seg Discovery CallSources and review
Published by Stratum Cost Segregation. Updated October 13, 2026. These are service-fit guides, not independent rankings or guarantees of tax savings. Confirm current offerings and written engagement terms.
Know the study fee before you book.
Stratum cost segregation studies cost $1 per square foot, with a $2,000 minimum per property.
Calculate your study fee · Estimate potential accelerated depreciation
Discuss your property, study scope and next steps with AE Tax Advisors.
Own one rental home? Start here.
Compare the study fee with deductions you can use, prepare for your CPA conversation, and work through examples for a single house, condo, duplex or furnished Airbnb.