Calculator · Stage 5

Cost Segregation Benefit Estimator

Estimate the Year 1 tax savings of accelerating depreciation on a rental property through a cost segregation study.

Educational tool only. Cost segregation requires an engineering study. Savings depend on your ability to claim passive losses or Real Estate Professional Status.

Property Inputs

Purchase Price ($)

Land Value Allocation (%)

Land cannot be depreciated

Marginal Tax Rate (%)

Fed + State marginal rate

Cost Segregation Assumptions

Short-Life Property Allocation (%)

Typically 15% - 30% for residential

Bonus Depreciation Rate (%)

Additional Year 1 Tax Savings

—

Cash saved on your taxes this year vs standard depreciation.

Depreciation Breakdown

Depreciable Basis (Building Value)—

Short-Life Property Identified—

Scenario A: Standard Straight-Line

Year 1 Depreciation Deduction—

Year 1 Tax Savings—

Scenario B: With Cost Segregation

Bonus Depreciation Deduction—

Standard Depr. on Remaining Basis—

Total Year 1 Deduction—

Total Year 1 Tax Savings—

Recapture Warning

Cost segregation is a timing difference, not a permanent tax elimination. If you sell the property, you will pay Depreciation Recapture Tax (up to 25% for building, ordinary rates for short-life) on the accelerated amounts, unless you execute a 1031 Exchange or hold until death.