Four-Family Rental Sample Study
The smallest of our acquisition sample studies: a four family rental, walked through part by part.
Illustrative sample
Dollar figures shown are illustrative and come from the sample's own data. Estimates, never guarantees; results depend on your specific tax situation.
The Property and the Land
Property type
Square feet
4,200
Year built
1994
Units
4
Stories
2
Acquired
January 1, 2026
Placed in service
January 1, 2026
Purchase price
$850,000
Land value
$127,500
How the land was set
owner-provided estimate
Building basis
$722,500
The three positions describe the building only. Land is carved out first and never depreciates, so the less of the price assigned to land, the more there is to depreciate: a low land value is the aggressive land position and a high land value is the conservative one.
The Three Positions
| Position | Conservative | Middle of the Road | Aggressive |
|---|---|---|---|
| Share of the building basis moved | 16% | 24% | 32% |
| First year depreciation with the study | $136,750 | $192,536 | $248,322 |
| Additional first year depreciation | $111,571 | $167,357 | $223,143 |
First year depreciation without a study: $25,179.
Part 1A sets out 9 combinations of land value and position.
These figures come from the study's own depreciation schedules, which the PDF prints in Part 1. The card on the samples page shows the planning estimate, so its figures differ slightly.
How the Basis Was Classified
Classification method: Modeled residual method. This sample is modeled: no site inspection, no engineering take off and no documents were reviewed, and the PDF says so in its methodology.
The class totals below are at the Middle of the Road position, the one this study states.
| Class | Amount | Share of basis |
|---|---|---|
| 5 year property | $121,380 | 17% |
| 15 year land improvements | $52,020 | 7% |
| Building on its 27.5 year life | $549,100 | 76% |
16 asset rows in the classification schedule.
Every dollar of the $722,500 basis is allocated.
$121,380 of section 1245 property, 17% of the basis. What section 1245 property is
Bonus rate 100% on the sample's dates: acquired January 1, 2026, placed in service January 1, 2026.
Bonus basis in the study $173,400, bonus amount $173,400.
Which bonus rate applies to which datesWhich property gets bonus depreciation
Quality and Audit Risk
8 of the 13 principal elements met and 5 partial, by the study's own scorecard.
Audit risk gauge: green, with 24% of the basis in the shorter lives.
What Is in the PDF
Every part of this sample study PDF, in order:
- Cover
- Table of Contents
- Letter of Transmittal
- Part 1: Executive Summary
- Part 1A: The Land Question and the Nine Positions
- Part 2: Property and Acquisition
- Part 3 (Element 1): Preparer Expertise and Responsibilities
- Part 4 (Element 2): Methodology
- Part 5 (Element 3): Documentation Reviewed
- Part 6 (Element 4): Interview Memorandum
- Part 7 (Elements 5 and 6): Nomenclature and Numbering System
- Part 8 (Element 7): Legal Analysis
- Part 9 (Element 8): Engineering Take-Offs and Unit Costs
- Part 10 (Element 9): Detailed Asset Classification and Cost Schedule
- Part 11 (Element 10): Basis Reconciliation
- Part 13 (Element 12): Section 1245 Property Schedule
- Part 14 (Element 13): Related Tax Considerations
- Part 15: Depreciation and §168(k) Analysis
- Part 15: Depreciation Schedules
- Part 16: Photographs, Plans and Engineering Exhibits
- Part 17: Legal Authority Appendix
- Audit-Risk Gauge
- ATG Quality Scorecard (Pub. 5653 Principal Elements)
- Assumptions, Limiting Conditions and Certification
- Form 4562 Line Map
- CPA Next Steps
- Appendix: Representative Photography
- Contact
The PDF runs 46 pages.
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