Loading market data…

Free calculator

Cost Segregation ROI Estimator

See how much you could save in year one by accelerating depreciation on your commercial or rental property.

Property details

$

$100,000 – $50,000,000

%

Land is not depreciable. Typical land allocation is 15%–25% of total value.

Land value: $400,000  ·  Depreciable basis: $1,600,000

Bonus depreciation (TCJA phase-down): 2024 = 60% · 2025 = 40% · 2026 = 20%

2025 bonus depreciation rate: 40%
32%
24%32%35%37%

Federal only — state taxes add additional savings.

Without cost seg

Year 1 depreciation

$20,513

Year 1 tax savings

$6,564

Straight-line over 39 yrs, half-year convention

Accelerated

With cost seg

Year 1 depreciation

$228,759

Year 1 tax savings

$73,203

Bonus + accelerated schedules, 40% bonus rate

First-year benefit summary

Additional year 1 depreciation$208,246
Estimated first-year tax benefit$66,639
Typical study fee$8,000–$15,000 for this property size~$11,500
Est. net first-year benefit after study cost$55,139

Reclassification breakdown — Commercial / office

5-yr personal property20%15-yr land improvements10%39-yr long-life70%

$320,000

5-yr personal property

$160,000

15-yr land improvements

$1,120,000

39-yr long-life

Important notes

Cost segregation accelerates depreciation — it does not create new deductions, it moves them earlier. This is a timing benefit, not a permanent tax elimination.
Bonus depreciation is subject to recapture on sale. Consult a tax professional before proceeding.
Results are estimates based on industry-average reclassification percentages. Actual results vary by property and require a formal engineering study.

Ready to maximize your depreciation benefit?

Our former IRS and Treasury agents work with cost segregation engineers to maximize your depreciation benefit.

This estimator uses simplified industry-average reclassification percentages and does not constitute a formal cost segregation study. Actual results require an engineering-based analysis. Consult a qualified tax professional.