Cost Segregation Calculator
Compare ordinary building depreciation with an assumed reclassification of qualifying components into shorter MACRS recovery periods.
Estimated first-year tax savings
$63,248Cost-seg first-year deduction
$209,402Without cost segregation
$11,752The allocation percentages are assumptions, not an engineering study. Land is not depreciable. A defensible study must identify assets and legal authority; state conformity, §163(j), passive losses, disposition recapture, and partial-disposition elections are not modeled.
What this tool covers
Calculation scope
- Requires building basis net of nondepreciable land.
- Uses the mid-month convention for the remaining building basis.
- Treats entered allocation percentages as assumptions, not a study.
Frequently asked questions
Is this calculator a cost segregation study?
No. A defensible study identifies assets, costs, recovery classes, methods, and supporting legal authority. This tool only tests allocation assumptions.
Can land be included?
No. Land is not depreciable. Enter only the depreciable building basis after allocating the acquisition price between land and building.
What happens when the property is sold?
Accelerated depreciation can increase later depreciation recapture. Model the disposition separately and keep the study and basis records.
Sources
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