Cost Segregation Calculator

Estimate your first-year tax savings through accelerated depreciation. Cost segregation reclassifies building components to shorter depreciation schedules, front-loading deductions.

What is Cost Segregation?

Cost segregation is a tax strategy that accelerates depreciation deductions by reclassifying building components into shorter recovery periods. Instead of depreciating everything over 39 years, certain items can be depreciated over 5, 7, or 15 years.

  • 5-Year Property: Carpeting, decorative lighting, signage, appliances
  • 15-Year Property: Parking lots, sidewalks, landscaping, fencing
  • 39-Year Property: Building structure, roof, HVAC systems

Who Benefits Most?

Cost segregation provides the greatest benefit to:

  • Investors in higher tax brackets (37%+ marginal rate)
  • Properties purchased or renovated for $1M+
  • Real estate professionals with passive income
  • Properties with significant personal property components
  • Investors planning to hold for 5+ years

Typical ROI on a cost segregation study ranges from 10:1 to 30:1.