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Today’s topic: The 2025 IRS rule that could change your cost segregation study.

For years, many cost seg firms have accelerated kitchen cabinets, countertops, and sinks into 5-year property. But new 2025 IRS guidance makes it clear: these are structural components and must be depreciated over 27.5 or 39 years.

In this article, we break down:

The exact changes in the 2025 IRS Audit Technique Guide
Why cabinets and counters are no longer 5-year property
The limited exceptions (and documentation) that still exist
Why some cost seg providers are ignoring the update
3 questions every multifamily investor should ask their CPA
How to avoid audit risk and stay compliant going forward

“A lot of firms are still doing it the old way. But the IRS has drawn a hard line and ignoring it could create major audit exposure.”

Check out the full article to make sure your next study is done right:

Read the full article

Thank you for reading. Please reach out and let me know what resonated with you. I read every email!

Cheers,

Sean

CPA | Founder of Maven Cost Seg

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