Most investors have never seen a cost segregation report before ordering one. Here's exactly what's inside — using a real $750K Airbnb as an example.
| MACRS Class | Amount | % of Accelerated | Bonus Eligible |
|---|---|---|---|
| 5-Year Property | $142,800 | 70% | Yes — 100% |
| 7-Year Property | $16,320 | 8% | Yes — 100% |
| 15-Year Property | $44,880 | 22% | Yes — 100% |
| 27.5yr Property | $396,000 | 66% | No — standard schedule |
| Total Depreciable Basis | $600,000 | 100% | — |
| Method | Year-1 Deduction | Difference |
|---|---|---|
| Standard Straight-Line (27.5yr) | $21,818 | — |
| With Cost Segregation + Bonus | $204,000 | +$182,182 |
A cost segregation study is a 30-40 page engineering-based analysis that reclassifies your property's building components into their correct IRS depreciation categories. The report is prepared by our engineering team using property-specific data — assessor records, satellite imagery, construction cost databases, and market data — without requiring a physical site visit.
The core of the report is the component-level depreciation schedule. For our example $750K Airbnb, the study identified 47 distinct building components and classified each into the appropriate MACRS recovery period: $142,800 in 5-year property (furniture, appliances, carpet, decorative fixtures), $16,320 in 7-year property (certain equipment and fixtures), and $44,880 in 15-year property (landscaping, paving, fencing, outdoor improvements). The remaining $396,000 stays in the standard 27.5-year class.
Beyond the depreciation schedule, the report includes: an executive summary with total accelerated depreciation and estimated tax savings, property description and construction analysis, detailed methodology section explaining IRS compliance, a MACRS class allocation chart, and a professional certification letter your CPA can file with your tax return. The report is designed to be IRS-audit-ready — meaning if you're ever audited, the study provides the engineering documentation to support every reclassification.
From order to delivery, the process takes 3-5 business days. You provide your property address, purchase price, and closing date. We handle everything else — no site visit needed, no disruption to your tenants. The completed report is emailed as a PDF that you forward to your CPA for inclusion in your tax filing.
| Price | Accelerated | Tax Savings | Study Cost | ROI |
|---|---|---|---|---|
| $300K | $81,600 | $30,192 | $795 | 38x |
| $500K | $136,000 | $50,320 | $795 | 63x |
| $750K | $204,000 | $75,480 | $795 | 95x |
| $1M | $272,000 | $100,640 | $1,195 | 84x |
| $400K | $108,800 | $40,256 | $795 | 51x |
| $600K | $163,200 | $60,384 | $795 | 76x |
| $1.5M | $408,000 | $150,960 | $1,195 | 126x |
| Property Type | Accelerated | Tax Savings | Study Cost | ROI |
|---|---|---|---|---|
| Airbnb / Short-Term Rental | $204,000 | $75,480 | $795 | 95x |
| Rental Property | $108,000 | $39,960 | $795 | 50x |
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.
The 30-40 page report includes: an executive summary with total accelerated depreciation and tax savings, detailed component-level depreciation schedule with MACRS classifications, property description and construction analysis, IRS-compliant methodology documentation, MACRS allocation chart, and a professional certification letter for your CPA. The report is designed to withstand IRS audit scrutiny.
Our studies are delivered in 3-5 business days. You provide the property address, purchase price, and closing date — we handle everything else using assessor records, satellite imagery, and construction cost databases. No site visit or tenant disruption required.
Short-term rentals are typically furnished with furniture, appliances, electronics, linens, kitchenware, and décor — all of which qualify as 5-year personal property under MACRS. This FF&E (furniture, fixtures, and equipment) often represents 15-20% of the property's depreciable basis, significantly increasing the accelerated depreciation amount compared to unfurnished long-term rentals.
Get a professional, IRS-defensible cost segregation study delivered in 3-5 business days. Starting at $795.
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