Cost segregation on a $1.5M Industrial reclassifies $191,250 into accelerated depreciation.
Engineering-based study using industry-standard 2026 construction 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.
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.
5-year property
Personal property: appliances, carpet, FF&E, decorative finishes. Fully bonus-eligible at 100% under OBBBA (2025+).
7-year property
Office furniture, certain equipment, specialty fixtures. Also bonus-eligible.
15-year property
Land improvements: driveways, fencing, landscaping, site lighting. Bonus-eligible.
Without a study vs. with one.
At a 37% federal bracket, that's $70,762 in cash you keep instead of paying — a 18× return on the $3,995 study. Run it on your actual property below.
The $1.5M industrial at four federal brackets.
The headline figure assumes the top 37% bracket. Most owners are not in it, so here is the same $191,250 Year-1 deduction valued at other federal rates, before and after the $3,995 study fee. State income tax comes on top where your state conforms to federal bonus depreciation.
| Federal bracket | Year-1 tax value | After the $3,995 fee |
|---|---|---|
| 24% | $45,900 | $41,905 |
| 32% | $61,200 | $57,205 |
| 35% | $66,938 | $62,943 |
| 37% | $70,763 | $66,768 |
A $1.5M purchase price falls in the $1M–$3M band of our Industrial / Warehouse pricing, a flat $3,995. At $3,000,000 and above the next band applies ($6,295). See the full pricing table.
Depreciation on a $1,125,000 basis, with and without the study.
The Year-1 reclassification of $191,250 equals about 6.6 years of standard 39-year depreciation on this property. After Year 1 the study's annual deduction is smaller, because the reclassified $191,250 has already been taken and only the $933,750 remaining building basis is still depreciating. Full years shown; the purchase year is shorter under the mid-month convention.
| Year | No study | With study | Cumulative extra deduction |
|---|---|---|---|
| Year 1 | $28,846 | $215,192 | $186,346 |
| Year 2 | $28,846 | $23,942 | $181,442 |
| Year 3 | $28,846 | $23,942 | $176,538 |
| Year 4 | $28,846 | $23,942 | $171,635 |
| Year 5 | $28,846 | $23,942 | $166,731 |
The cumulative gap narrows by $4,904 a year and closes over the recovery period; cost segregation changes when you deduct, not how much. Depreciation taken is generally recaptured on a taxable sale.
- $3M warehouse / industrial: $382,500 reclassified on a $2,250,000 basis
- The warehouse cost segregation guide explains which components drive these numbers.
Your property is probably not exactly $1.5M.
Plug in your actual purchase price, property type, age, and finish level on the homepage calculator. It uses the same engine — no signup, results in 60 seconds.