Cost segregation on a $4M Mixed-Use Commercial reclassifies $570,000 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 $570,000 splits across 5-, 7-, and 15-year property.
These percentages are illustrative for a mixed-use commercial 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 $210,900 in cash you keep instead of paying — a 42× return on the $4,995 study. Run it on your actual property below.
The $4M mixed-use commercial at four federal brackets.
The headline figure assumes the top 37% bracket. Most owners are not in it, so here is the same $570,000 Year-1 deduction valued at other federal rates, before and after the $4,995 study fee. State income tax comes on top where your state conforms to federal bonus depreciation.
| Federal bracket | Year-1 tax value | After the $4,995 fee |
|---|---|---|
| 24% | $136,800 | $131,805 |
| 32% | $182,400 | $177,405 |
| 35% | $199,500 | $194,505 |
| 37% | $210,900 | $205,905 |
A $4M purchase price falls in the $3M–$5M band of our Standard Commercial pricing, a flat $4,995. At $5,000,000 and above the next band applies ($6,995). See the full pricing table.
Depreciation on a $3,000,000 basis, with and without the study.
The Year-1 reclassification of $570,000 equals about 7.4 years of standard 39-year depreciation on this property. After Year 1 the study's annual deduction is smaller, because the reclassified $570,000 has already been taken and only the $2,430,000 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 | $76,923 | $632,308 | $555,385 |
| Year 2 | $76,923 | $62,308 | $540,769 |
| Year 3 | $76,923 | $62,308 | $526,154 |
| Year 4 | $76,923 | $62,308 | $511,538 |
| Year 5 | $76,923 | $62,308 | $496,923 |
The cumulative gap narrows by $14,615 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.
- The mixed-use cost segregation guide explains which components drive these numbers.
Your property is probably not exactly $4M.
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.