Cost Segregation for Multifamily Properties:

Cost segregation is a tax strategy that allows multifamily property owners to accelerate depreciation deductions, reducing taxable income in the early years of ownership. Here’s how it works and why it’s beneficial:

  • Typically, a building is depreciated over 27.5 years (for residential rental property).
  • Cost segregation breaks down the property into components: Personal property (e.g., appliances, flooring, cabinetry) – depreciated over 5-7 years.
  • Land improvements (e.g., landscaping, parking lots) – depreciated over 15 years.
  • Structural components remain on the 27.5-year schedule.
  • A specialized engineering study identifies and reclassifies these assets.
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Benefits

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01. Accelerated Depreciation: Increases deductions in the first 5-15 years.

04. Higher ROI: Tax savings can be reinvested into other projects.

02. Improved Cash Flow: More deductions mean lower taxes and more cash on hand.

05. Ideal For:
•New acquisitions
•Renovated multifamily properties
•Newly constructed buildings

03. Bonus Depreciation: 100% bonus depreciation (phasing down after 2022) allows immediate expensing of qualified assets.

Sustainability Initiatives for multifamily

LEED (Leadership in Energy and Environmental Design) certification—a globally recognized standard from the U.S. Green Building Council (USGBC). LEED emphasizes sustainable practices across multiple areas, with a significant focus on recycling and waste reduction during construction and ongoing operations. Integrating these practices into our management model (for some properties) can serve as a competitive advantage.

  • Chicago Energy Benchmarking Ordinance Structure  and oversight without adding expense to property management operations. Instead, these programs can be positioned as strategic differentiators—tools that help management companies present themselves as forward-thinking, sustainability-focused partners.
  • Energy Efficiency Upgrades
    •Install LED lighting, smart thermostats, and energy-efficient appliances.
    •Improve insulation and windows to reduce heating/cooling costs.
  • Water Conservation
    •Use low-flow faucets, toilets, and showerheads.
    •Implement smart irrigation systems and drought-tolerant landscaping.
  • Smart Building Technology
    •Implement building management systems (BMS) for real-time energy mon
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Our clients

Serving Multi family & Property Management companies

We collaborate with visionary property owners and management companies who prioritize environmental leadership while optimizing asset appreciation and maximizing long-term financial returns.