STR, condo, multifamily, or commercial — most Miami owners save $40K–$200K in Year 1. Florida has no state income tax, year-round international tourism keeps STR FF&E density high, and the 2010-2024 Brickell/Edgewater condo boom hits the sweet-spot construction era for accelerated reclassification. 30-second estimate, no signup.
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Reviewed by Cost Seg Smart Editorial Team · Last reviewed: · Methodology: IRS Pub. 5653, Rev. Proc. 87-56, what is cost segregation?
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Estimate is illustrative. Final number is engineered to your specific property and reviewed by a licensed engineer.
If your Miami property is over $200K basis and held for 12+ months, you can run the full study at costsegsmart.com — typically delivered in under an hour, starting at $495. Order at Cost Seg Smart →
National calculators assume stable mid-market rentals. South Florida doesn't behave that way — and four local factors push the math materially in your favor.
Art Basel (December), Ultra Music Festival (March), F1 Miami GP (May), Miami Open tennis, Latin American + European seasonal tourism. STRs need premium furnishings to compete on event-week and high-season pricing — $40K–$80K of FF&E per property, all 5-year personal property under MACRS. Higher than landlocked-US STR markets.
Florida adds zero state-side complexity. Federal cost-seg savings are the entire benefit — no decoupling math, no state addback, no parallel state depreciation schedule. Add Save Our Homes 3% cap on homestead property tax, and Florida is among the cleanest cost-seg jurisdictions in the country.
Brickell, Edgewater, Wynwood, and Mid-Beach saw massive 2010–2024 mid-rise and high-rise development. Modern code-current HVAC, electrical, fire suppression, smart-building systems all classify as 5/7-year property — not 27.5-year structural. Sweet-spot construction era for cost-seg reclassification.
Florida's 2002+ Building Code mandates impact-rated glazing, premium HVAC with surge protection, hardened electrical, and continuous-load roofing. While the structural shell stays 27.5/39-year, the premium mechanical systems push 5/7-year reclassification 1-2 percentage points above non-coastal markets. Miami Beach STR ban does not affect federal eligibility — basis is basis.
Every number below is generated by our production cost-seg engine. Component allocations follow IRS Cost Segregation Audit Techniques Guide methodology with RSMeans 2024 cost basis. 2025 placed-in-service, 100% bonus depreciation under OBBBA, 37% federal bracket. Actual results vary with property age, condition, and basis allocation.
Wynwood · STR
Edgewater · Multifamily
Brickell · Office
These outputs come straight from our production engine. To see one rendered as a full engineered PDF, browse a sample Miami report → at costsegsmart.com.
We won't sell you a study that doesn't pencil. Almost everything else — long-term holds, condos for personal-then-rental conversion, Brickell condo investment portfolios — typically does.
The $495 study still produces a net benefit, but small enough that it's marginal — typically $3K–$5K Year-1 savings. Rare in Miami; most condos clear this floor easily.
Depreciation recapture on sale will eat most of the Year-1 acceleration. Wait, do the 1031 (very common Miami play), or hold longer.
Everything else — long-term holds, mid-term rentals, owner-occupied portion of duplexes, Miami Beach STR-to-LTR conversions, Brickell condo portfolios, recent renovations — typically pencils.
We use RSMeans 2024 cost data with Miami-specific regional multipliers, Miami-Dade Property Appraiser records for land allocation, and the IRS Cost Segregation Audit Techniques Guide methodology. No site visit needed for residential or small-commercial under $5M. An engineer reviews and signs off on every report before delivery.
Full methodology details →No. IRS rules are federal; Miami Beach's restrictive STR ordinance (Section 142-905 — STR allowed only in specific RM-1, RM-2, RM-3 zones with permits) governs operations, not depreciation. Your federal cost-seg basis is your acquisition cost from the closing disclosure regardless of whether you can legally STR the property. Owners who held South Beach properties pre-ban often pivot to long-term or annual leases — cost seg still applies, just at LTR (~18%) accelerated reclassification rather than STR (~28%).
Yes, with one caveat: condos run lower accelerated reclassification (~14% of basis) than freestanding STRs (~28%) because shared site improvements (parking garage, pool deck, landscaping) are HOA-owned, not owner-owned. The interior FF&E and unit-level finishes still qualify for 5-year reclassification. Brickell and Edgewater condos typically generate $15K–$45K Year-1 federal savings depending on basis.
No. Miami-Dade Property Appraiser annual reassessments affect property tax (your TRIM notice and tax bill), not the IRS basis used for federal cost segregation. Your cost-seg basis is your acquisition cost from the closing disclosure plus subsequent capital improvements minus land value — not the assessor's market value. Florida's Save Our Homes 3% cap and 10% non-homestead cap affect property tax only.
Yes — the most common cost-seg play in Miami right now. Carry-over basis from the relinquished California property plus any boot becomes the new basis. Cost seg can run on that basis. CA-to-FL 1031s have grown sharply since 2023 (CA's §168(k) decoupling makes FL look great on the math). Your CPA coordinates the IRC §1031 deferral and §168(k) bonus depreciation; the cost-seg study sits on top.
Miami is in the top quartile, similar to Nashville and Austin. Florida has no state income tax — federal benefit is the whole benefit. Atlanta is materially lower because Georgia has 5.49% state income tax. Miami's edge over Nashville/Austin: year-round international tourism (Art Basel, Ultra, F1 Miami GP, Miami Open) drives consistent STR FF&E demand, plus the 2010-2024 Brickell/Edgewater condo boom is exactly the sweet-spot construction era for accelerated reclassification.
Mostly the components are still classified normally per Rev. Proc. 87-56 — impact-rated glazing is part of the building structure (27.5/39-year), not personal property. However, Miami's strict 2002+ Florida Building Code mandates premium HVAC and electrical systems that DO classify as 5/7-year property. The premium hurricane-resistant build typically pushes reclassification 1-2 percentage points above non-coastal markets.
Have a question we didn't cover? Email [email protected] or see the full FAQ at Cost Seg Smart →
STR, condo, multifamily, or commercial — we generate the engineered PDF, an engineer signs off, your CPA files. Studies start at $495 for sub-$300K residential; most Miami properties land in the $895–$1,895 tier.
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