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.
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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
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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.
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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
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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
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Tax Savings
Assuming a 32% marginal bracket:
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$200,400 × 32% = $64,128
→ Approx. $64,000 in federal tax savings
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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.
