Enter your property details to instantly estimate your accelerated depreciation, first-year tax savings, and return on study investment.
This calculator estimates the tax savings from a cost segregation study using the same methodology our engineering team applies to actual studies. Here's the math:
We subtract an estimated 20% for land value, giving you an 80% depreciable basis. In an actual study, the land allocation is determined using county assessor data, comparable sales, and statistical models — but 80% is a reasonable starting estimate for most properties.
Each property type has a typical percentage of the depreciable basis that can be reclassified into shorter MACRS recovery periods. Airbnbs and restaurants are highest (34-35%) because they contain the most personal property. Single-family rentals are lower (18%) but still generate substantial savings. These shares are based on our analysis of thousands of cost segregation studies.
With 100% bonus depreciation available under current federal tax law, the entire reclassified amount is deductible in year one. We multiply by your tax bracket to estimate the actual cash savings.
When you eventually sell the property, the IRS recaptures the accelerated depreciation at a maximum 25% rate. However, the time value of money heavily favors taking the deduction now — and a 1031 exchange can defer recapture indefinitely. Your CPA can help you model the full lifecycle economics.
Explore complete MACRS analysis, comparison tables, and scenario narratives for common property profiles.
A cost segregation study is an engineering-based analysis that reclassifies components of your property into shorter IRS depreciation categories (5, 7, and 15 years) instead of the default 27.5 or 39 years. This accelerates your depreciation deductions, reducing your tax bill in the early years of ownership.
This calculator provides a reasonable estimate based on typical cost segregation results for each property type. Actual results depend on factors like property age, condition, renovations, local construction costs, and land value. Our actual studies use property-specific data from assessor records, satellite imagery, and construction cost databases for precise figures.
Yes. Under current federal tax law, 100% bonus depreciation is available for qualifying property placed in service in 2025 and beyond. All property reclassified through cost segregation into 5-year, 7-year, or 15-year MACRS classes is eligible for full first-year deduction under IRC §168(k).
Cost segregation typically delivers positive ROI on properties valued at $200K and above for investors in the 24%+ tax bracket. Our studies start at $795 for residential properties, and even a $200K rental generates roughly $10K in first-year tax savings.
Our studies are delivered in 3-5 business days. No site visit or tenant disruption required — we use assessor records, satellite imagery, and construction cost databases to complete the analysis remotely.