Florida Cost Seg Bonus Dep: Multifamily vs Mobile Home Parks

We talk with Florida real estate investors every week who are looking for ways to keep more of what they earn. With insurance climbing, repairs costing more, and competition heating up, every dollar counts.

One of the simplest and most powerful tools to boost cash flow is Florida Cost Seg Bonus Dep, a strategy that pulls future depreciation into the present. It frees up money the moment investors need it most.

Both multifamily properties and mobile home parks can benefit, but they don’t perform the same. Their structure, land improvements, and layout create different tax outcomes. This article breaks down those differences in a way that’s easy to understand and directly useful for serious investors.

Ready to see how much you could save? Get your Florida Cost Seg Bonus Dep estimate from Square Accounting.

Why Florida Cost Seg Bonus Dep Matters

Florida is booming. In 2023 alone, the state gained over 365,000 new residents, making it the fastest-growing state in the country. That growth brings opportunity, but also pressure:

• Higher insurance

• Higher renovation costs

• Tight cap rates

• Intense buyer competition

Accelerated depreciation helps soften these pressures by lowering federal taxable income and increasing liquidity.

And since Florida doesn’t have a state income tax, every federal deduction matters even more. It’s the perfect environment for maximizing Florida Cost Seg Bonus Dep.

How Cost Segregation Actually Works

Cost segregation sounds complicated, but here’s the simple version:

Every property has components that wear out at different speeds. A cost segregation study breaks the building into parts:

• 5-year items like cabinets, flooring, and appliances

• 7-year items like specialty mechanical and electrical pieces

• 15-year items like pavement, utility lines, and landscaping

• 27.5-year items like walls, roofs, and foundations

Anything with a shorter life can be depreciated faster. And when bonus depreciation applies, a large chunk of those items can be written off in the first year.

That’s the heart of Florida Cost Seg Bonus Dep.

Bonus Depreciation Phase-Down

Bonus depreciation is still available, but it’s shrinking each year:

• 80 percent in 2023

• 60 percent in 2024

• 40 percent in 2025 (current year)

• 20 percent in 2026

• 0 percent in 2027 unless Congress extends it

Even at 40 percent, the impact is still big, especially for properties loaded with land improvements.

Bonus depreciation is phasing down. Don’t miss out on your highest possible first-year deductions. Request your free analysis now.

What Multifamily Properties Usually Produce

Most Florida multifamily buildings are heavy on structure: concrete, roofs, HVAC systems, and the building shell. Those aren’t eligible for fast depreciation.

But the interior buildout offers opportunities:
Flooring, appliances, cabinets, lighting, and amenity upgrades usually qualify for shorter lives.

Because of this mix, most multifamily properties in Florida generate 20 to 30 percent reclassifiable assets.

Example

On a $10 million multifamily building:

• $2.2M to $2.8M may qualify for faster depreciation

• At 40 percent bonus depreciation, investors can see $880k to $1.12M in first-year write offs

That’s real money back into your pocket.

Why Mobile Home Parks Often Perform Better

Mobile home parks operate differently. When tenants own their homes, the owner’s investment is mostly in the infrastructure, not buildings.

That infrastructure usually qualifies for 15-year depreciation, which is extremely bonus-depreciation friendly.

This includes:

• Pads

• Roads

• Electrical pedestals

• Water and sewer connections

• Drainage systems

• Lighting

• Landscaping

• Entryways and signage

Because these items dominate the cost basis, mobile home parks often see 40 to 60 percent reclassified into shorter depreciable lives.

Example

On a $10 million mobile home park:

• $4M to $5.5M may qualify for faster depreciation

• At 40 percent bonus depreciation, investors see roughly $1.6M to $2.2M in first-year write offs

This is why mobile home parks typically outperform multifamily when using Florida Cost Seg Bonus Dep.

Thinking about buying or expanding a mobile home park? Get a precise Florida Cost Seg Bonus Dep projection tailored to your deal.

Multifamily vs Mobile Home Parks: The Real Difference

Here’s the side-by-side comparison investors ask for:

If your main goal is maximum depreciation, mobile home parks win. If your goal is long-term appreciation and tenant demand, multifamily still shines.

Compare your properties side by side with a cost seg report. Square Accounting will show you the exact tax savings from each asset.

How This Boosts Cash Flow for Florida Investors

Accelerated depreciation strengthens cash flow right away. Investors use these savings to:

• Build reserves for rising insurance costs

• Fund renovations or upgrades

• Prepare for refinancing

• Purchase additional properties

• Reduce pressure during lease-up periods

For high net worth investors, these savings often protect six figures or more in the first year alone.

Accelerate your cash flow this year. Book your investor tax strategy session with our team.

Hold Period, Recapture, and Smart Planning

Depreciation recapture is real, but with the right plan, it’s manageable:

• Long-term holds spread out the impact

• 1031 exchanges defer it altogether

• Bonus depreciation still gives powerful upfront value even if recapture happens later

Square Accounting models long-term scenarios so you know exactly how Florida Cost Seg Bonus Dep fits your overall strategy—no surprises.

Not sure how recapture affects your deal? Let us run a custom recapture and 1031 projection so you can plan with confidence.

Risks and Compliance

Cost segregation is IRS-approved, but only when done correctly. That means:

• Engineering-based studies

• Proper component breakdown

• Accurate classification of land improvements

• Clear documentation

And in Florida, you also have to consider wind zones, flood zones, and insurance implications. We factor all of these into your depreciation strategy.

Which Property Type Is Right for You?

Choose multifamily if you want:

• Long-term appreciation

• Institutional-grade stability

• Strong financing options

• Consistent depreciation benefits

Choose mobile home parks if you want:

• Maximum first-year tax acceleration

• High cash flow

• Lower capex

• Strong long-term demand for affordable housing

Both can be strong performers, but the tax outcomes are not equal.

How Square Accounting Helps You Maximize It

Square Accounting specializes in helping Florida investors squeeze every possible dollar out of Florida Cost Seg Bonus Dep.

We handle:

• Cost segregation studies

• Bonus depreciation forecasting

• Portfolio-wide depreciation planning

• 1031 exchange strategy

• Recapture modeling

• Real estate tax optimization

Our goal is simple:
Help you keep more of your money while building a stronger portfolio.

Conclusion

Florida Cost Seg Bonus Dep is one of the most valuable tax tools available to real estate investors today. Multifamily and mobile home parks both offer meaningful benefits, but the results vary based on their structure and components. With the right strategy and the right advisor, you can dramatically improve cash flow and unlock significant tax advantages.

We are here to help you get every deduction you’re entitled to and turn your investments into stronger, more tax-efficient assets.

FAQ for Florida Cost Seg Bonus Dep

1. What is Florida Cost Seg Bonus Dep?

Florida Cost Seg Bonus Dep refers to the combined tax strategy of cost segregation and bonus depreciation used by Florida real estate investors to accelerate deductions. By reclassifying assets into shorter depreciation lives, investors can reduce federal taxable income and increase cash flow in the first year. This strategy is especially valuable in Florida because the state has no income tax.

2. Do multifamily properties or mobile home parks get better cost segregation results in Florida?

Mobile home parks typically outperform multifamily properties for Florida Cost Seg Bonus Dep. This is because mobile home parks contain a high percentage of land improvements that qualify for 15-year depreciation, which often results in 40 to 60 percent of the basis being accelerated. Multifamily properties usually generate 20 to 30 percent due to heavier structural components.

3. How much bonus depreciation can Florida investors still take in 2025?

In 2025, Florida investors can use 40 percent bonus depreciation. While bonus depreciation is phasing down, it still provides a strong first-year tax advantage, especially for mobile home parks with large amounts of 15-year assets.

4. Why does cost segregation work so well for mobile home parks?

Mobile home parks qualify for strong Florida Cost Seg Bonus Dep results because most of the owner’s basis sits in infrastructure: pads, water lines, sewer lines, electrical pedestals, roads, and drainage. These assets fall into 15-year categories, making them eligible for bonus depreciation and producing significantly larger upfront deductions.

5. Is cost segregation worth it for multifamily properties in Florida?

Yes. Multifamily properties still benefit substantially from cost segregation. Investors typically accelerate 20 to 30 percent of the building’s value into shorter depreciation lives. Even with bonus depreciation phasing down, multifamily cost seg produces strong tax savings and improves DSCR, cash flow, and reinvestment capability.

6. How does Florida’s lack of state income tax affect cost segregation?

Since Florida has no state income tax, all savings from Florida Cost Seg Bonus Dep flow directly into reducing federal tax liability. This makes accelerated depreciation particularly valuable for high-income investors who need substantial federal deductions.

7. Do mobile home parks have more tax advantages than multifamily properties?

From a depreciation standpoint, yes. Mobile home parks usually generate larger first-year deductions due to the high percentage of land improvements. However, multifamily properties offer advantages in stability, financing, and long-term appreciation. The better choice depends on the investor’s goals.

8. Will I owe more taxes later because of depreciation recapture?

Depreciation recapture applies when an asset is sold, but it can be mitigated using 1031 exchanges, long-term holding strategies, and proper tax planning. In many cases, the upfront savings from Florida Cost Seg Bonus Dep far outweigh the potential recapture years down the line.

9. Can I still use cost segregation if I bought the property in previous years?

Yes. Investors can apply cost segregation retroactively by filing a Form 3115 Change in Accounting Method. This allows you to catch up on missed depreciation in a single year without amending prior returns.

10. How do I know if my property qualifies for Florida Cost Seg Bonus Dep?

Most income-producing real estate qualifies, including multifamily, mobile home parks, self-storage, retail, industrial, hospitality, and office properties. The best way to determine your projected first-year write-off is through a professional cost segregation estimate.