Free Calculator
Cost Segregation Calculator
Estimate the first-year tax savings from reclassifying portions of a real-estate purchase into 5-, 15-, and 39-year depreciation classes — with current-year bonus depreciation applied.
Your situation
Cost segregation reclassifies building components into shorter depreciation classes — pulling deductions forward.
Year-1 tax savings
$45,068
from accelerated depreciation, before subtracting study cost
Read this carefully
Cost segregation is a timing benefit — total depreciation is the same, just front-loaded. Bonus depreciation rate phases down each year (20% in 2026). Passive activity loss rules may defer deductions for non-real-estate-professional owners. Talk to a partner.
Estimates for educational purposes only — not tax, legal, or accounting advice. Your specific facts will change the result; confirm with a CPA before acting.Coordinate with 1031 and passive loss planning
The biggest real-estate tax wins come from stacking strategies: 1031 exchange to defer the prior gain, cost segregation to accelerate the new property's deductions, and real-estate-professional status (or PAL planning) to make sure the deductions land where you want them.
Keep reading
EBITDA
Earnings Before Interest, Taxes, Depreciation, and Amortization — a proxy for operating cash generation.
GlossaryDepreciation
The systematic expensing of a long-lived asset's cost over its useful life.
GlossaryBonus Depreciation
An additional first-year depreciation allowance for qualifying property, currently phasing down through 2027.
GlossaryBonus Depreciation
Additional first-year depreciation deduction allowed on qualifying property, currently phasing down from 100% to 0% by 2027.
GuideChart of Accounts: Setup for SMBs by Industry
Your chart of accounts shapes every report you ever read. Here's how to set one up by industry — agencies, e-commerce, real estate, restaurants — so the numbers tell the truth.
GuideThe Augusta Rule (§280A(g)): Rent Your Home to Your Business
Up to 14 days/year of personal residence rental to your own business — tax-free to you, deductible to the business. Here's how to do it right and why the IRS scrutinizes it.