Cost segregation for Detroit property investors

Adaptive-reuse and multifamily studies dominate. Older buildings often have strong reclassification potential. Whether you own a single property or a portfolio in Detroit, an engineering-based cost segregation study reclassifies components of your building from 27.5- or 39-year real property into 5-, 7-, and 15-year MACRS class lives.

Under the One Big Beautiful Bill Act (OBBBA), 100% bonus depreciation has been restored for qualifying property acquired and placed in service after January 19, 2025 — meaning every dollar of accelerated property identified in your Detroit study can be deducted in year one. For a typical property in this market, that often translates to 20–35% of cost basis reclassified into shorter recovery periods.

Michigan market context

Michigan's automotive and manufacturing base drives heavy industrial activity, with Detroit's revitalization adding multifamily and adaptive-reuse engagements.

Every TDA Detroit study is built off engineering takeoffs, RSMeans cost data, and the IRS Cost Segregation Audit Techniques Guide methodology.