Worked example · Industrial

Cost segregation on a $1.5M Industrial reclassifies $191,250 into accelerated depreciation.

Engineering-based study using RSMeans 2026 cost data and IRS Audit Techniques Guide methodology. Numbers below are computed from the same formula our production studies use — adjust for your actual property with the calculator at the bottom.

Accelerated depreciation
$191,250
17% of $1,125,000 basis
Year-1 federal tax savings
$70,762
at 37% marginal bracket
Return on study cost
47×
study fee $1,495
MACRS class breakdown

How the $191,250 splits across 5-, 7-, and 15-year property.

These percentages are illustrative for a industrial of this size and age. Your study reports component-level detail so your CPA can place each item on the correct depreciation schedule.

35%
10%
55%

5-year property

$66,938

Personal property: appliances, carpet, FF&E, decorative finishes. Fully bonus-eligible at 100% under OBBBA (2025+).

7-year property

$19,125

Office furniture, certain equipment, specialty fixtures. Also bonus-eligible.

15-year property

$105,187

Land improvements: driveways, fencing, landscaping, site lighting. Bonus-eligible.

Year-1 deduction comparison

Without a study vs. with one.

Standard depreciation
1,125,000 ÷ 39 years
$28,846
Year-1 deduction (no study)
With cost seg + 100% bonus
5/7/15-yr accelerated
$191,250
Year-1 deduction
Difference
+$162,404 pulled forward into Year 1

At a 37% federal bracket, that's $70,762 in cash you keep instead of paying — a 47× return on the $1,495 study. Run it on your actual property below.

Run your numbers

Your property is probably not exactly $1.5M.

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If the math works for your property

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