$900K Rental: Your Cost Segregation Breakdown

Q: What is a cost segregation study?

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 years, accelerating your depreciation deductions.

Q: How long does the study take?

CostSegSmart delivers your complete, CPA-ready cost segregation study in 3-5 business days. The 30-40 page PDF report includes component-level detail, MACRS allocation schedules, and depreciation calculations your CPA can file directly.

A $900K rental delivers a 60x return on the cost of the study — $86,314 in year-one tax savings from $129,600 in reclassified depreciation.

$129,600Accelerated Depreciation

$47,952Est. Year-1 Tax Savings

60xReturn on Study Cost

Adjust Your Numbers

Property Type

Purchase Price

$86,314

Estimated Year-1 Tax Savings

$129,600

Accelerated Deductions

$795

Study Cost

60x

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$77,760

10.8%

7-Year Property$14,400

2.0%

15-Year Property$37,440

5.2%

27.5-Year Property$590,400

82.0%

Estimated Year-1 Tax Savings$86,314

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

Estimated deduction based on typical cost segregation allocations for single-family rental properties. Actual study results may vary based on property-specific analysis.

What This Means for You

$900K rental property with cost segregation reclassifying building components for accelerated depreciation

At $900K, you are in quality rental markets — suburban Denver, suburban Seattle, or parts of the Bay Area. These properties are typically 4-bedroom, 2,400+ SF homes built between 2000 and 2018 with upgraded finishes, mature landscaping, and substantial site improvements.

The component analysis at this price point identifies significant short-life property: granite or quartz countertops, hardwood or luxury vinyl flooring, custom cabinets, upgraded bathroom vanities, recessed lighting, ceiling fans, water heaters, HVAC systems, garage door openers, and electrical panel components. Site improvements include concrete driveways, walkways, retaining walls, fencing, irrigation systems, and professional landscaping.

The $129,600 in accelerated deductions at the 37% bracket generates $86,314 in year-one tax savings. For Real Estate Professionals (750+ hours in real estate activities), these deductions are fully non-passive and can offset W-2 or business income without limitation.

IRS CompliantMethodology aligned with IRS Audit Techniques Guide

CPA-Ready Reports30-40 page PDF your CPA can file directly

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

See a SampleDownload sample report

Compare: Rental Property at Different Price Points

Price	Accelerated	Tax Savings	Study Cost	ROI
$600K	$86,400	$31,968	$795	40x
$750K	$108,000	$39,960	$795	50x
$900K	$129,600	$47,952	$795	60x
$1M	$144,000	$53,280	$1,295	41x
$1.2M	$172,800	$63,936	$1,295	49x

Frequently Asked Questions

What components get reclassified in a $900K rental?▼

Major reclassified components include kitchen cabinets, countertops, flooring, bathroom fixtures, HVAC equipment, water heaters, light fixtures, driveways, walkways, fencing, and landscaping.

What is a cost segregation study?▼

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 years.

How long does the study take?▼

CostSegSmart delivers your complete, CPA-ready study in 3-5 business days. The 30-40 page PDF includes component-level detail and MACRS allocation schedules.