Cost Segregation Calculator
Estimate how much you could save on taxes with cost segregation.
Free, takes 2 minutes.
Property Depreciation Calculator
How Cost Segregation Works
A building isn’t just four walls and a roof. It contains many components — like carpet, cabinetry, specialty electrical, and land improvements (sidewalks, fencing) — that may qualify for shorter tax recovery periods (e.g., 5, 7, or 15 years instead of 27.5 or 39 years).
The purpose of a cost segregation study is to identify and reclassify those shorter tax life components so you can accelerate depreciation deductions and improve cash flow. Depending on the year, qualifying assets may also be eligible for bonus depreciation, which further increases your year 1 depreciation and tax savings. Check what bonus depreciation you qualify for here.
Even without bonus depreciation, simply moving items to shorter lives will increase first-year deductions compared to straight-line 27.5 or 39 year schedules.
Cost Seg Example
| Purchase price for property | $1,000,000 |
| % of purchase price allocated to land (which is non-depreciable) | 20% |
| Depreciable basis | $800,000 |
| % of depreciable basis reclassified into shorter life categories with a cost seg | ≈ 25% |
| Assets eligible for accelerated depreciation with a cost seg | ≈ $200,000 |
| Year 1 tax savings at a 37% income tax rate with a cost seg | ≈ $74,000 |
Higher depreciation → lower taxable income → improved cash flow
Note: Actual results will depend on the specific features of your property (e.g., quality of the property, condition, year of purchase, renovation work, location, etc.).
Why Choose Us
We help real asset owners navigate the complex worlds of tax credits and incentives. Our team has 20+ years of experience performing cost seg studies.
We are unique in the market by offering a full range of cost seg services, from DIY studies for single-family residential properties to fully engineered studies for more complex properties and situations (under our sister brand MVO). We focus on delivering the highest quality reports, at a price that ensures a high ROI.
Process and Pricing
Step 1
Get FREE Estimate
Input some basic info about your property and get a FREE estimate of the potential tax savings, cash flow increase, and ROI from a cost seg report
Takes 2 minutes
Step 2
Generate Report
When you’re ready, input your property details and INSTANTLY generate your cost seg report. We also offer review by our experienced engineering team
Takes 15 minutes and starts at ~$595
Step 3
Save Money!
After generating your cost seg report, implement the results into your federal and state tax filings and save money on your income taxes!
First-year tax savings of ~8% of your purchase price