# MF Cost Seg

> Institutional multifamily cost segregation. A practice of Cost Seg Smart LLC focused on syndication-scale MF deals: K-1-ready basis schedules, Form 3115 §481(a) lookback, Partial Asset Disposition modeling for value-add. Engineered methodology under IRS Pub 5653 + Rev. Proc. 87-56.

## What this site is

MF Cost Seg (mfcostseg.com) provides engineered cost segregation studies for institutional multifamily real estate — syndicators, sponsors, GPs, family offices, and acquisitions teams at MF funds. Studies target deals at $2M–$50M+ basis, with the institutional anchor at $10M–$25M ($12,995 fixed-fee tier).

The deliverable is a workpaper package: engineered study report, K-1-ready basis schedule, MACRS reclassification tables (5/7/15/27.5-year buckets with §1245/§1250 designation), and Form 3115 §481(a) calculations for prior-year acquisitions.

## What this site is not

- Not the small-multifamily / first-property surface. For 5–24 unit deals with individual-investor framing, see [costsegsmart.com/multifamily-5plus/](https://costsegsmart.com/multifamily-5plus/).
- Not commercial property by class (office, retail, restaurant, industrial, hospitality). For those, see [commercialcostseg.com](https://commercialcostseg.com).
- Not a residential rental / STR / SFR site. For those, see [costsegsmart.com](https://costsegsmart.com).

## Methodology summary

Studies follow IRS Publication 5653 (Cost Segregation Audit Techniques Guide) supplemented by Revenue Procedure 87-56 (MACRS class life table) and Treasury Regulation §1.168(i)-6/-8. Components are classified under IRC §1245 (personal property, 5/7-year) or §1250 (real property, 15/27.5-year) per *Hospital Corporation of America v. Commissioner* (1997) and subsequent Tax Court precedent.

Bonus depreciation under §168(k) was permanently restored to 100% by the One Big Beautiful Bill Act (OBBBA, signed July 2025), applicable to property placed in service on or after January 19, 2025.

## Reclassification ranges for multifamily

| Deal shape | 5-year | 15-year | 27.5-year |
|---|---|---|---|
| Stabilized core, basic finishes | 6–8% | 5–7% | 85–89% |
| Value-add, mid-tier finishes | 8–11% | 6–9% | 80–86% |
| Class-A new construction | 10–14% | 7–10% | 76–83% |
| Garden-style, older vintage | 5–7% | 4–6% | 87–91% |

## Pricing

Published fixed-fee, no percentage-of-savings billing:

- $2M–$5M basis: $4,495
- $5M–$10M basis: $7,995
- **$10M–$25M basis: $12,995** (institutional anchor tier)
- $25M+ basis: by proposal

## Network sister sites

- [costsegsmart.com](https://costsegsmart.com) — single-property STR/SFR/small-MF
- [commercialcostseg.com](https://commercialcostseg.com) — office/retail/industrial/hospitality
- [irsdepreciationrules.com](https://irsdepreciationrules.com) — IRS rule layer reference
- [costsegregationreviews.com](https://costsegregationreviews.com) — provider comparisons

## Authority

A practice of Cost Seg Smart LLC (Wyoming). Editorial content reviewed against primary sources: IRS Pub 5653, Rev. Proc. 87-56, IRC §168/§469, Treasury Regulations under §1.168(i), and Tax Court precedent.