FOR LONG-TERM RENTAL OWNERS

Building wealth deliberately.
With the tax code on your side.

Long-term rentals are the textbook cost-seg use case. The methodology has been IRS-blessed since 1997 and used by Big 4 firms and REIT controllers ever since. CostSegLogic gives you the same study at software pricing — whether you’re a real estate professional running a portfolio or a first-time investor with a single duplex.

Run mine free See sample report

No card. CPA-reviewed. Available the moment you finish.

FIRST-YEAR DEDUCTION

Illustrative

$54,200

± $7,200 (Q3 confidence band)

7 / 12 questions answered · estimate sharpens with each answer

Sample shown — your number depends on your property.

METHODOLOGY PEDIGREE

Built on cost segregation methodology IRS-blessed since 1997 — the same engineering used by Big 4 firms and REIT controllers for two decades. Used by property owners, including the founder. Trusted by CPAs, tax and real estate professionals.

Real estate pro First-time investor

FOR REAL ESTATE PROFESSIONALS

You know what you’re buying. You just want the tool.

If you’ve done cost seg before, you know the workflow. Pull the settlement statement, run the asset classification, apply the right MACRS conventions, generate the schedules. CostSegLogic compresses that loop dramatically without giving up any of the rigor — same engineer-grade methodology, same audit trail, same documentation a licensed CPA expects to see.

If you’ve done cost seg before, you know the workflow. You don’t need the pitch — you need the tool. The methodology is the same one you’ve seen on $5K studies. The price reflects software running the engineering work, not a consultant flying to your property. Your recapture schedule ships with the report. No one else does that.

INPUT

Settlement statement, in.

HUD-1, ALTA, or closing disclosure. The interview parses the relevant lines and pre-fills the basis breakdown — you confirm or correct.

ENGINE

Same rule book the big firms use.

5-, 7-, 15-, 27.5-, 39-yr asset classification with §1245/§1250 distinction. MACRS half-year, mid-quarter, mid-month conventions handled automatically. OBBBA bonus rates applied per placed-in-service date.

OUTPUT

Cost Segregation Report, out.

Cost-seg study + year-by-year schedules + state-specific treatment + Form 3115 (if §481(a) catch-up) + recapture schedule. Same package a $5,000 firm ships, on the same day you finish the interview.

PORTFOLIO

$495 per property, no volume discount.

Run as many as you have. The marginal cost of running another study is small enough that we'd rather price it flat than discount portfolio operators down from a fictional list price.

AUDIT TRAIL

Every line cites its source.

IRS code section, ATG chapter, MACRS class — all in the report. Defensibility lives in the methodology, not in the price tag.

CPA HAND-OFF

Report-grade for your CPA.

Built to be reviewed by a licensed CPA, not handed to a homeowner. The format follows what a tax professional expects to see, in the order they expect to see it.

FIRST PROPERTY?

If this is new to you, the next section is for you.

Cost segregation is one of the highest-leverage tax moves available to a rental property owner, and it’s also one of the most opaque. We unpack it below in plain language.

FIRST-TIME RENTAL OWNERS

What cost seg is, and whether it’s worth doing.

Bought your first duplex or single-family rental? Welcome. Here’s the version that doesn’t assume you already know what MACRS is.

The default depreciation

When you buy a rental, the IRS lets you deduct the building (not the land) over 27.5 years for residential or 39 years for commercial. So if your building basis is $300,000, you get roughly $10,900 of deductions a year, every year, for 27.5 years. Real money — just spread out.

What cost segregation does

A cost-seg study breaks the property into its components — appliances, carpet, landscaping, fencing, cabinets, specialty wiring, the things inside the building — and reclassifies many of them into shorter recovery periods (5, 7, or 15 years). The result: a much larger deduction in the first year. Real money, sooner.

Why it’s worth doing

The time value of money. A deduction today is worth more than the same deduction spread over decades, because today’s deduction lets you keep cash you would have paid in tax — cash you can deploy into another property, into a renovation, or just into your life. For most LTR owners with reasonable income, the first-year deduction is in the tens of thousands of dollars.

The catch nobody tells you about

When you sell the property, a portion of those accelerated deductions gets recaptured by the IRS. We hand you a plain-English recapture schedule with every study so you know exactly what you’re accelerating, what’s owed back if you sell, and how to plan for it. Most firms don’t mention this. We do.

BOTTOM LINE

If your rental property’s building basis is north of roughly $200K, cost seg is almost always worth running. The free snapshot tells you whether the number is big enough to upgrade — available the moment you finish the interview. If it’s not, you keep the PDF and you’re done.

WHAT LTR OWNERS SAY

How CostSegLogic shows up on a long-term hold.

One illustrative voice from a multifamily investor running a §481(a) look-back. Real, named testimonials replace this card as our first cohort’s studies file and consents land — the full set lives on /customers.

Priya Sankaran

LTR — 8-unit multifamily · Cincinnati, OH

Before

$0 cost-seg deductions

After

$94,600 §481(a) catch-up

“We bought the building in 2019 and were depreciating it on the standard 27.5-year schedule the whole time. The §481(a) catch-up ran $94,600 in the year of the change with the Form 3115 drafted in the report — I sent it to my CPA the same day and she signed it. That's the move that's been sitting on the table for six years.”

Names and details illustrative; scenarios reflect typical CostSegLogic outputs and engine results.

LTR FAQ

The questions LTR owners ask.

I’m a real estate professional. Does the §469 passive-loss limit go away?

Yes — if you qualify as a real estate professional under §469(c)(7) (750+ hours, more than half your personal services, material participation per property or aggregated), your rental losses are non-passive and offset ordinary income. The interview asks for your REPS status and flags it on the study. If you’re close to the line, the report notes the audit-defensibility expectations.

What if I’m not a real estate professional?

The cost-seg deductions still happen — they just offset rental income (and, after that, accumulate as passive-activity losses to offset future rental income or gain on sale). For most LTR owners with multiple properties or near-term sale plans, that’s still very valuable. The study quantifies it in your specific situation rather than handing you a generic answer.

What if I’ve owned the property for several years already?

That’s the §481(a) catch-up: you compute the cumulative depreciation you should have taken under the reclassified asset lives, the catch-up lands in the year of the change, and the Form 3115 ships drafted with your report. It’s often the highest-leverage move on older properties.

Does this work for multifamily, small commercial, mixed-use?

Yes — through 4 units of multifamily and small commercial up to single-property scale. The methodology is the same; the asset classes shift slightly (39-yr instead of 27.5-yr for non-residential). For larger or more complex assets, the CPA-Verified tier is the right fit.

GET STARTED

Run the snapshot on your rental.

No card. The interview adapts to your property type, your state, and your investor profile. The snapshot is yours to download the moment you finish — we’ll also email you a copy.