Why residential rentals reclassify well in Georgia

Georgia anchors the Southeast with Atlanta's logistics, distribution, and Class A multifamily market. Studies often capture significant land improvements given suburban densification patterns.

Residential Rental properties have a particular profile that makes cost segregation especially valuable: single-family rentals, small portfolios, flooring + appliances + site improvements. The shell sits on a 27.5-year recovery period under MACRS — but every residential rental is hundreds of components, many of which qualify for 5-, 7-, or 15-year recovery and accelerated bonus depreciation.

Typical reclassification ratio

For a residential rental in Georgia, TDA studies typically reclassify 15–25% of depreciable basis. Combined with 100% OBBBA bonus depreciation on property acquired and placed in service after January 19, 2025, that translates the entire reclassified amount into a year-one deduction.

Georgia markets we serve

We deliver residential rental cost segregation studies across Georgia, including Atlanta, Augusta, Columbus, Macon, Savannah. Engineering-based methodology and RSMeans cost data on every engagement.