Cost segregation calculator

It is a planning estimate, not a study. It uses the typical share each property type reclassifies, a standard land share and a July placed-in-service date; your study measures your own building, land and dates. Real studies land across a range: 8–32% of depreciable basis for a single-family rental, and the range for every type is in the table on this page. Land is the biggest swing, so your county assessor's ratio can move the result more than anything else.

The fee is set by property type and purchase price. Single-family rentals, condos and short-term rentals start at $495, duplexes to fourplexes at $995, and office, retail and mixed-use buildings at $995. The calculator shows the fee for your price, and the order form shows your exact fee before you pay.

Usually, if you can use the deduction this year. In our model a $500,000 single-family rental gains about $59,000 of extra year-one depreciation, worth about $18,880 at a 32% bracket, against a study fee of $895. It is weaker if you will sell within a year or two, your bracket is low, land is most of the price, or the loss will be passive with no passive income to absorb it.

Residential rental property, where at least 80% of the rent comes from dwelling units, is depreciated over 27.5 years. Office, retail, industrial and other nonresidential buildings use 39 years. Apartment buildings stay at 27.5 years however many units they have. A short-term rental rented mostly to transient guests may not count as a dwelling unit, so many CPAs file it at 39 years; the calculator lets you choose for short-term rentals and mixed-use. The 5-, 7- and 15-year property a study finds is the same either way.

You can still order a study, and you do not amend any old returns. The depreciation you missed is claimed in the current tax year as a §481(a) adjustment, filed on Form 3115 as an automatic change in accounting method. The adjustment is what the study's schedule would have allowed through last year less the straight-line depreciation you already took, using the bonus depreciation rate for the year the property was placed in service. Choose An earlier year in the calculator to model it, and your CPA files Form 3115 with your return.

Yes, for property both acquired and placed in service after January 19, 2025 (IRS Notice 2026-11). Property acquired on or before that date stays on the prior phase-down, 20% when placed in service in 2026. Property placed in service in 2023 took 80% and in 2024 60%; the calculator applies the rate for the year you choose.

Not every state does. Some states require you to add bonus depreciation back and take it over several years instead, and states with no income tax are unaffected. The federal deduction does not change. This calculator shows the federal figure only; our state conformity table lists each state's treatment and source.

State tax conformity, the passive activity loss rules, personal-use limits under §280A, closing costs and improvements you added, and recapture when you sell. It also assumes the property was acquired and placed in service in the same year. Each of these can change what the deduction is worth to you, which is why your CPA confirms the numbers before you file.

Most residential studies are delivered in 1–2 business days once your documents are in. Portfolios take one to two business days per property, scheduled with you. Studies with an on-site observation take about a week. Every study is quality-checked before delivery and arrives as a CPA-ready PDF with an Excel fixed-asset file.

Yes. Cost segmentation is a common misspelling of cost segregation, and a cost seg calculator, cost segregation study calculator and cost segregation savings calculator all describe the same thing: an estimate of the extra depreciation, and the tax it is worth, that a cost segregation study adds on your property.