Typically passed over by large firms, the Residential Rental Property, whether it be an individual condominium or Rental Home, can still benefit from a Cost Segregation Study.

At TMP, we provide the same premium quality product for our commercial clients to our owner's of Residential Rental Property at a fraction of the price.


A cost segregation study is one of the most common tax planning tools for anyone involved with real estate.


Residential Cost segregation studies are most commonly prepared for the allocation or reallocation of building costs to tangible personal property. A building, termed "§ 1250 property", is generally residential rental property (27.5-year) property eligible for straight-line depreciation. Equipment, furniture and fixtures, termed "§ 1245 property", are tangible personal property. Tangible personal property has a shorter recovery period (e.g., 5 or 7 years) and is also eligible for accelerated depreciation (e.g., double declining balance, bonus depreciation). Therefore, a faster depreciation write-off (and tax benefit) can be obtained by allocating property costs to § 1245 property.


Types of Expenses


Listed Below are the most common rental expenses.

  • Advertising
  • Auto and travel expenses
  • Cleaning and maintenance
  • Commissions
  • Depreciation
  • Insurance
  • Interest(other)
  • Legal and other professional fees
  • Local transportation expenses
  • Management fees
  • Mortgage interest paid to banks, etc.
  • Points
  • Rental payments
  • Repairs
  • Taxes
  • Utilities



    Depreciation is a capital expense. It is the mechanism for recovering your cost in an income-producing property and must be taken over the expected life of the property. You can begin to depreciate rental property when it is ready and available for rent.


    Depreciation With Cost Segregation


    From September 27, 2017 on, a special depreciation allowance is available for eligible property and bonus depreciation

TMP delivers the right solution for you and your business

Our team offers the most comprehensive, engineering-based Cost Segregation Study in the market. Don't leave money on the table. Take advantage of our premium quality product today!

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