Case Studies
At 24 Hour Cost Seg, we believe the best proof of value is what our clients experience every day. Whether you own a short-term rental, a long-term single-family home, or a small multifamily property, a cost segregation study can unlock powerful tax savings and dramatically improve your cash flow. Below are real-world examples showing how investors across different property types accelerated their depreciation, reduced taxes, and reinvested those savings back into their portfolios—all with a fast, accurate, engineer-backed study delivered in 24 hours.
Real Results From Real Investors.
Case Study 1: Short-Term Rental (STR) —
$1.1M Lake House
Property Type: Luxury lake short-term rental
Purchase Price: $1,150,000
Placed in Service: March 2025
Taxpayer Situation: High-income W-2 couple qualifying for STR material participation
Goal: Offset W-2 income using bonus depreciation
Challenge
The owners purchased an STR with significant furnishings and upgrades. Their CPA estimated ~$29,500 in straight-line depreciation and wasn’t sure if a cost seg would materially help.
Solution
24 Hour Cost Seg identified:
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30% reclassification into 5-, 7-, and 15-year property
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$345,000 bonus-eligible depreciation (vs. $29,500 straight-line)
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Increase in total year-one deduction:
= $345,000 − $29,500
= $315,500 additional depreciation
Tax Savings
Assuming a 37% federal tax bracket:
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$315,500 × 37% = $116,735
→ Approx. $117,000 in year-one federal tax savings
Result
The clients fully offset their W-2 income and recaptured a substantial portion of their down payment in year one — all delivered in 24 hours with an audit-defensible report.
Case Study 2: Long-Term Rental Portfolio —
Two SFHs ($820K Combined)
Property Type: Two long-term single-family rentals
Combined Purchase Price: $820,000
Placed in Service: 2024
Taxpayer: Part-time real estate investor with positive rental income
Goal: Reduce taxable rental income and generate passive losses for future years
Challenge
The investor had never used cost segregation and assumed it was “only for large commercial buildings.”
Solution
24 Hour Cost Seg studies found:
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27% short-life reclassification
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$221,400 bonus-eligible depreciation
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Straight-line depreciation would have been $21,000
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Increase in first-year depreciation:
= $221,400 − $21,000
= $200,400 additional depreciation
Tax Savings
Assuming a 32% marginal bracket:
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$200,400 × 32% = $64,128
→ Approx. $64,000 in federal tax savings
Result
The properties that would have generated taxable rental income instead created a $142,000 passive loss, positioning the investor for lower taxes for several years.
Case Study 3: Residential Four-Plex —
$1.9M Multifamily
Property Type: Four-unit residential multifamily
Purchase Price: $1,900,000
Placed in Service: June 2025
Taxpayer: High-earning professional with passive real estate income
Goal: Maximize depreciation to shelter passive income
Challenge
The investor wanted to reduce taxable income generated from multiple existing rentals and sought a faster alternative to traditional 4–6 week cost seg timelines.
Solution
24 Hour Cost Seg generated:
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28% reclassified to 5-, 7-, and 15-year assets
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$532,000 bonus-eligible depreciation
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Straight-line depreciation estimated at $48,700
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Increase in first-year depreciation:
= $532,000 − $48,700
= $483,300 additional depreciation
Tax Savings
Assuming a 35% bracket:
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$483,300 × 35% = $169,155
→ Approx. $169,000 in federal tax savings
Result
The investor offset nearly all of their passive income for the year and improved cash flow across their real estate portfolio — all with a study delivered within 24 hours.
