$1.5M Rental: Your Cost Segregation Breakdown

Q: Is cost segregation worth it on a $1.5M rental?

The $1,295 study generates roughly $143,856 in year-one tax savings — a 62x return.

At $1.5M, cost segregation reclassifies $216,000 into accelerated categories, generating nearly $80K in year-one tax savings — a 62x return on the study cost.

$216,000Accelerated Depreciation

$79,920Est. Year-1 Tax Savings

62xReturn on Study Cost

Adjust Your Numbers

Property Type

Purchase Price

$143,856

Estimated Year-1 Tax Savings

$216,000

Accelerated Deductions

$1,295

Study Cost

62x

ROI on Study

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Estimates are for illustration only. Details

MACRS Depreciation Breakdown

Accelerated Depreciation by MACRS Class

Total reclassified from standard depreciation

5-Year Property$129,600

10.8%

7-Year Property$24,000

2.0%

15-Year Property$62,400

5.2%

27.5-Year Property$984,000

82.0%

Estimated Year-1 Tax Savings$143,856

Illustrative estimate. Final allocations vary based on property facts and report findings.

Estimated deduction based on typical cost segregation allocations. Actual study results may vary based on property-specific analysis.

What This Means for You

A $1.5M rental is a premium single-family asset — common in markets like suburban Los Angeles, Fairfax County, or Bellevue. These are typically 5-bedroom, 3,500+ SF homes with premium construction, custom finishes, and extensive grounds.

Properties at this price point contain more reclassifiable components: custom millwork, stone countertops, hardwood flooring, built-in entertainment centers, wine storage, upgraded HVAC systems, backup generators, security systems, multi-car garages, sport courts, and extensive landscaping with irrigation.

The year-one tax savings of $143,856 at the 37% bracket essentially pays for a year of property taxes on many $1.5M homes. For Real Estate Professionals, these deductions fully offset W-2 income without passive activity limitations.

IRS CompliantMethodology aligned with IRS Audit Techniques Guide

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Money-Back GuaranteeFull refund if the study doesn't save you money

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Compare: Rental Property at Different Price Points

Price	Accelerated	Tax Savings	Study Cost	ROI
$1M	$144,000	$53,280	$1,295	41x
$1.2M	$172,800	$63,936	$1,295	49x
$1.5M	$216,000	$79,920	$1,295	62x

Frequently Asked Questions

Is cost segregation worth it on a $1.5M rental?▼

The $1,295 study generates roughly 143,8560 in year-one tax savings — a 62x return.

What is a Real Estate Professional for tax purposes?▼

You must spend 750+ hours per year in real estate activities AND more time in real estate than any other profession. This makes all rental depreciation non-passive.

How is the study delivered?▼

You receive a 30-40 page CPA-ready PDF report within 3-5 business days with component-level detail and MACRS allocation schedules.