Inside a Cost Seg Smart Report

Every study is a 30-40 page professional PDF with component-level analysis, depreciation schedules, and full IRS documentation. Here is what your CPA receives.

Updated March 24, 2026 5 min read

Executive Summary

The first page of every report is a one-page executive summary. It gives your CPA the key numbers at a glance: purchase price, land allocation, depreciable basis, and the total amount reclassified into accelerated depreciation categories.

Here is what the summary looks like for a representative property:

Cost Segregation Study — Executive Summary

$750,000 Short-Term Rental — Nashville, TN | 2,400 SF | Built 2018

Purchase Price
$750,000
Land Value (Est.)
$150,000
20.0% of purchase price
Depreciable Basis
$600,000
Total Accelerated
$180,000
30.0% of depreciable basis
Study Cost
$795
Tax-deductible (IRC 212)
Return on Study
83x
Year 1 Tax Savings (37% bracket)
$66,600
100% Bonus Depreciation (OBBBA 2025+)
$180,000 deducted in Year 1

MACRS Class Breakdown

After the executive summary, the report breaks down the depreciable basis by IRS MACRS asset class. Each component is classified per Revenue Procedure 87-56 into its correct recovery period.

Depreciation by MACRS Asset Class
$600,000 depreciable basis — Nashville, TN short-term rental
5-Year Personal Property $126,000
21.0%
7-Year Property $12,000
2.0%
15-Year Land Improvements $42,000
7.0%
27.5-Year Building Structure $420,000
70.0%
Total Reclassified (5yr + 7yr + 15yr) $180,000
Cabinets, flooring, appliances, fixtures, FF&E (5yr) | Office furniture, specialty equipment (7yr) | Landscaping, parking, sidewalks, site improvements (15yr)

Component Detail (Excerpt)

The largest section of the report is the component-level inventory. Every reclassified item is listed individually with its MACRS classification, allocated cost, and cost source. Here are 10 representative line items from this Nashville STR:

Component MACRS Class Cost Source
Kitchen cabinets & countertops 5-Year $18,500 RSMeans 2024
Flooring (hardwood, tile, carpet) 5-Year $22,000 RSMeans 2024
Appliances (all) 5-Year $8,500 RSMeans 2024
Bathroom fixtures & vanities 5-Year $12,000 RSMeans 2024
Interior lighting 5-Year $6,500 RSMeans 2024
Furniture (beds, sofas, tables) 5-Year $35,000 Owner-provided
Electronics (TVs, smart home) 5-Year $4,500 Owner-provided
Landscaping & irrigation 15-Year $18,000 RSMeans 2024
Driveway & walkways 15-Year $15,000 RSMeans 2024
Outdoor lighting & fencing 15-Year $9,000 RSMeans 2024

What Your CPA Receives

Every completed study is a single PDF document (typically 30-40 pages) containing all of the following:

Methodology

Every Cost Seg Smart study follows the IRS Cost Segregation Audit Techniques Guide and addresses all 13 principal elements required for a compliant study.

Component costs are derived from RSMeans 2024 regional construction cost data, adjusted for property age, quality tier, and geographic location. Classification follows IRS Revenue Procedure 87-56 asset class definitions and IRC Section 168 recovery period rules.

Property data is sourced from county assessor records, satellite and street-level imagery, building permit databases, and public data APIs. The observation methodology and all data sources are documented in the report for full audit transparency.

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The figures shown on this page are representative of a typical short-term rental cost segregation study and are provided for illustrative purposes only. Actual results vary based on property type, purchase price, age, condition, geographic location, and individual tax circumstances. A cost segregation study is not tax advice. Consult a qualified CPA or tax advisor before claiming accelerated depreciation deductions. The study fee is tax-deductible under IRC Section 212.