Industries » Multifamily

Cost Segregation for
Apartments and Multifamily

By using cost segregation for apartment buildings, you’re freeing
up income in the first few years of ownership, often when
investors are breaking even.

How a Cost Segregation Study Works for Multifamily

By using cost segregation for apartment buildings, you’re freeing up income in the first few years of ownership, often when investors are breaking even. Cost segregation studies allow investors to break down the tax depreciation into parts.

Typically, investors can depreciate the cost of an apartment complex over 27.5 years using the straight-line method.

But with a cost segregation study, you can depreciate certain parts of the apartment or multifamily more quickly. This includes interior finishes, cabinetry, and appliances, any assets that do not compromise the structural stability of a multi-family building

These items can be fully depreciated in as little as 5, 7, or 15 years.

Get a Free Projection for cost segregation from our team of cost segregation experts.

How to Tell if Your Property Qualifies For A Cost Segregation Study

Apartment and multifamily building owners may qualify for a cost segregation study if they have done any of the following after 1985:

The strongest candidates for a cost segregation study are owners who have spent over $1 million on the property or over $100,000 in improvements. If you fall into this category, the benefits will greatly outweigh the cost.

Contact us for a free projection from our cost segregation experts.

How Do You Benefit From a Cost Segregation Study for Your Multifamily Building?

By accelerating depreciation on certain building assets, owners of multifamily apartment properties can realize significant tax benefits many years sooner and maximize the value of their investments.

Cost Segregation Calculator

How much could you save on your apartment complex?

Enter your property's cost basis below to see your projected tax savings based on NCSS completed studies.

Estimate your projected savings

Cost basis$2,000,000

$500K$10M

Total projected tax savings

$192,400

Projections are based on NCSS historical study data and assume a 37% federal tax rate. Individual results may vary.

What that includes

✓Ongoing IRS audit protection on every study, for life.
✓A custom-tailored, engineering-based cost segregation study from experts.
✓A guarantee of a minimum 5x return on your investment.
✓Free unlimited projections for life, any property, anywhere in the nation.

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Does a cost segregation study for apartments/multifamily change by state?

At National Cost Segregation Services, we are proud that our expertise serves every region of the U.S. A cost segregation study for apartments and multifamily properties identifies assets that may be eligible for a shorter depreciation schedule under the IRS guidelines. A cost segregation study is based on federal tax law, which means it’s applicable in any state.

While the method of cost segregation is the same state by state, the result varies. Some states follow the exact federal depreciation rules, while others limit or adjust certain deductions. This means one multifamily owner may see one result on their federal tax return and a different result on their state return.

Because National Cost Segregation Services works with apartment and multifamily property owners across the country, our studies are designed to support the federal depreciation strategy while providing your CPA with the detailed information needed to evaluate any state-level adjustments.

Do you have a question about what a cost segregation study looks like in your state? Talk to our cost segregation experts, and get a free projection.

Industries that benefit from cost segregation

Short Term Vacation Rental

Industrial / warehouse

100% bonus depreciation is now permanent

The 2025 One Big Beautiful Bill Act permanently restored 100% bonus depreciation for qualifying property acquired after January 19, 2025. Components with a depreciable life of 20 years or less may now be written off entirely in year one, not just for a single tax year, but going forward.

Cost Segregation Study and Remodeling

One of the strongest opportunities for a cost segregation study for apartment and multifamily properties is during renovation.

When owners renovate units, they often add assets eligible for depreciation in a cost segregation study.One of the strongest opportunities for a cost segregation study for apartment and multifamily properties is during renovation.
When owners renovate units, they often add assets eligible for depreciation in a cost segregation study.
Depending on the asset, certain items may be moved into 5-year, 7-year, or 15-year property categories instead of staying on the full 27.5-year schedule.
For apartment and multifamily owners, renovations often include a mix of structural building costs and shorter-life assets. A cost segregation study is the best way to separate these costs, ensuring the depreciation schedule accurately reflects the property.
With the help of a cost segregation expert, owners can generate significant deductions by analyzing contractor invoices, construction budgets, purchase receipts, project timelines, and placed-in-service dates to determine which costs may be eligible for accelerated depreciation.
Questions about where your recent remodel falls into a cost segregation study? Get a free projection from one of our cost segregation experts today.

The Five Guarantees of Cost Segregation Excellence at National Cost Segregation Services

We guarantee ongoing IRS audit protection on every study for life. If an IRS fine is issued due to any negligence on our part, we will pay the fine and give you $ 1,000.
We guarantee a quintuple return (5x) or more on your cost segregation study investment.
We guarantee a custom-tailored cost segregation study on your Multifamily or apartment building. Our engineering-based study will be tailored exactly to your commercial property. No ‘cookie-cutter’ approach.
We guarantee free unlimited projections for life. Any property in the nation.
We guarantee your Overall Satisfaction at the conclusion of your study, or we will make it right.

See what your property could save

Get a free projection from the nation’s leading cost segregation firm.

Cost Segregation for Apartments and Multifamily

By using cost segregation for apartment buildings, you’re freeing up income in the first few years of ownership, often when investors are breaking even.