Free Cost Segregation Depreciation Calculator (2026)
Explore accelerated depreciation through cost segregation
Why Cost Segregation Matters
Cost segregation studies allow property owners to reclassify building components into shorter depreciation schedules — such as 5, 7, or 15 years instead of 27.5 or 39 years. Our depreciation calculator helps you estimate the potential benefit of a cost segregation study by comparing standard straight-line depreciation against accelerated schedules. Understand whether the upfront cost of a study is justified by the tax savings, and present this powerful strategy to your investor clients.
Best For
Owners of commercial or large residential properties
Investors who recently purchased or renovated properties
Real estate agents educating high-net-worth clients
Tips & Best Practices
Cost segregation studies are most beneficial for properties valued at $500,000 or more due to the upfront study cost
Newly purchased, constructed, or renovated properties are the best candidates for cost segregation
Bonus depreciation rules (currently phasing down) can amplify cost segregation benefits dramatically in the first year
Work with a qualified cost segregation specialist — DIY approaches may not withstand IRS scrutiny
Frequently Asked Questions
Cost segregation is an IRS-approved strategy that identifies building components (carpeting, fixtures, landscaping, parking lots) that can be depreciated over 5, 7, or 15 years instead of the standard 27.5 or 39 years. This front-loads your depreciation deductions, providing significantly larger tax savings in the early years of ownership.
A cost segregation study typically costs between $5,000 and $15,000 depending on the property size and complexity. For properties valued above $1 million, the tax savings in the first year alone often exceed the study cost many times over. Smaller properties may not justify the expense unless they have significant qualifying components.
Yes, you can perform a "look-back" cost segregation study on properties you already own. The IRS allows you to catch up on the accelerated depreciation you missed by filing a Form 3115 (Change in Accounting Method), which lets you claim the cumulative difference in a single tax year without amending prior returns.
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