You're leaving $37K–$52K in Year 1
tax savings on the table
Standard depreciation spreads your deduction evenly over 27.5 years. Cost segregation reclassifies building components to shorter recovery periods — and with 100% bonus depreciation restored, you can take it all in Year 1.
Estimated Year 1 Tax Savings · $500K Rental Property
$37,000 – $52,000
At 37% top federal rate · 100% bonus depreciation (OBBBA, 2025+) · Actual savings depend on your bracket
Most rental property owners use standard straight-line depreciation. A cost segregation study identifies components eligible for accelerated recovery — often generating 25%–35% of the depreciable basis as a first-year deduction.
Side-by-Side
$500K Residential Property (20% Land)
| Standard | With Cost Seg | |
|---|---|---|
| Method | 27.5-yr straight-line | Accelerated by asset class |
| Year 1 Deduction | $14,545 | $100,000 – $140,000 |
| Year 1 Tax Savings (37%) | $5,382 | $37,000 – $52,000 |
| Year 1–5 Cumulative | $72,727 | $138,000 – $178,000 |
| ROI on $795 Study | N/A | 47x – 65x return |
100% bonus depreciation on reclassified 5/7/15-yr components. Range depends on property features, age, and construction type. Total lifetime depreciation remains the same — cost segregation accelerates the timing.
How It Works
Three steps to accelerated depreciation
1
Get Your CPA-Ready Report
Provide property details online. No site visit required.
2
Receive Your Report
35+ page CPA-ready PDF delivered in under 1 hour.
3
File & Save
Your CPA files Form 4562 or 3115. You claim the deduction.