Cost Segregation Study Guide

Cost segregation reclassifies components of a building from 39-year (commercial) or 27.5-year (residential rental) property into faster 5-, 7-, or 15-year MACRS categories. A study typically costs $5,000–$15,000 but can generate tens of thousands in accelerated deductions in year one, especially when combined with bonus depreciation. Enter your property details to estimate the benefit.

Property Type

Property Cost Basis ($)

Land Value (excluded) ($)

Year Placed in Service

Reclassification Estimates (% of depreciable basis)

Default percentages are industry averages. Adjust based on your engineer's estimate or property type.

5-Year Property (carpets, fixtures, appliances)

7-Year Property (office furniture, equipment)

15-Year Property (land improvements, paving, landscaping)

Your Tax Bracket (%)

Cost Segregation Study Fee ($)

Depreciation by Asset Class

Class	Life	Basis	Yr 1 Deduction	Bonus Dep (2025 40%)

Depreciable Basis

Without Cost Seg — Year 1 Deduction

With Cost Seg — Year 1 Deduction

Accelerated Deduction (Year 1)

Tax Savings (Year 1)

Study Fee

Net Benefit After Study Cost

ROI on Study