Unit flooring, appliances and qualifying finishes
CALIFORNIA MULTIFAMILY OWNERS
Reviewed August 17, 2026 · Updated for current federal bonus-depreciation guidance
Your apartment property is not one 27.5-year asset.
A multifamily property contains apartments, common areas, appliances, unit finishes, amenities and exterior improvements. Cost segregation documents which components remain 27.5-year building property and which may qualify for shorter recovery periods.
- ✓ No study work before payment
- ✓ CPA-ready final report
- ✓ California statewide
WHY IT MATTERS
Move eligible basis into faster recovery periods.
The opportunity often becomes larger when an owner completes unit turns, renovates common areas or buys a garden-style property with extensive site work. The analysis must also distinguish acquired building basis from separately purchased furniture, fixtures and equipment to prevent duplication.
Plain English: you are not creating a new deduction. You are identifying when supported pieces of the property may be depreciated.
WHAT WE REVIEW
Common multifamily components reviewed
Clubhouse, leasing office and amenity assets
Pool, recreation and outdoor improvements
Parking, sidewalks, fencing and landscaping
Dedicated electrical and plumbing where supported
Renovations completed after acquisition
SHOW ME THE NUMBERS
Illustrative multifamily example
Illustrative only. This assumes a 37% federal marginal rate where shown and that the owner can currently use the deduction.
- Property value
- $4,000,000
- Estimated depreciable basis
- $3,200,000
- Potential faster basis
- $544,000 to $800,000
- Potential upfront federal effect
- $201,000 to $296,000
- Study or comparison benchmark
- Up to $30,000+
This is a timing illustration, not guaranteed permanent tax savings. California commonly requires a separate depreciation schedule because it generally does not conform to federal bonus depreciation.
DOES IT FIT?
Strong candidates usually have four things.
✓
Five units or a meaningful building basis
✓
Recent acquisition, construction or renovation
✓
Garden, low-rise or mid-rise property
✓
Owner expects to hold while deductions can be used
PORTFOLIO PRICING
More properties. Lower cost per study.
Order and pay for the properties together to receive a simple portfolio discount.
2 properties5% off3 to 4 properties10% off5+ properties15% off
STRAIGHT ANSWERS
Frequently asked questions.
Is multifamily depreciated over 27.5 years?+
Residential rental building property is generally recovered over 27.5 years, while qualifying personal property and land improvements may use shorter recovery periods.
Can renovations be included?+
Yes, when the improvement costs and placed-in-service dates are documented and the costs are not duplicated elsewhere in the fixed-asset schedule.
Is the free estimate a completed study?+
No. It is an illustrative screen using the facts you provide. No engineering takeoff, professional certification or tax opinion is included. Technical work begins only after a signed and paid engagement.
Does my CPA need to approve the study first?+
No. It is smart to ask whether you can currently use additional depreciation, but the paid study does not require advance CPA approval. Your CPA makes the final filing decision.
Do you guarantee tax savings?+
No. A study accelerates the timing of eligible depreciation. Results depend on basis, property facts, placed-in-service dates, passive-loss rules, tax rates and the owner's filing position.
AUTHORITATIVE SOURCES
Reviewed against current IRS and California guidance.
Last reviewed August 17, 2026. Tax rules and procedures can change. Your CPA should confirm the law that applies to your acquisition date, placed-in-service date and return.
FREE PRELIMINARY PROPERTY SCREEN