Real Estate Cost Segregation Study Tool
Cost Segregation Estimate
Enter your building's cost basis (excluding land) and estimated allocations to calculate potential depreciation benefits in Year 1.
Estimated Percentage Allocation
Enter the estimated percentage of the building cost that could be reclassified. Typical ranges: 5-year (5-15%), 15-year (15-30%). 7-year is less common for the building shell.
*This tool provides an **estimate** based on user-provided inputs and simplified depreciation rules. It is not a substitute for a professional cost segregation study performed by qualified engineers and tax professionals. Depreciation rules are complex and subject to change.
Estimated Benefits Summary
Enter details in the Input tab and click "Calculate Estimate" to see the results.
The Real Estate Cost Segregation Study Tool is designed to help property owners, investors, and tax professionals identify and classify property components for accelerated depreciation benefits. Cost segregation is a powerful tax strategy that separates building costs into shorter-lived asset categories, allowing for faster depreciation deductions and improved cash flow.
Using this tool, you can estimate potential tax savings by breaking down your commercial or residential real estate into categories such as personal property, land improvements, and building components. Each category has different depreciation schedules under IRS rules, which this tool helps you apply correctly to maximize deductions.
Cost segregation studies can significantly reduce taxable income in the early years of property ownership, freeing up capital for reinvestment or operational expenses. This is especially beneficial for newly acquired properties, renovations, or expansions.
The tool also provides guidance on IRS compliance requirements and documentation best practices, ensuring your cost segregation study withstands IRS scrutiny during audits. It is ideal for real estate investors, developers, CPAs, and tax advisors seeking an efficient way to quantify depreciation benefits.
By leveraging the Real Estate Cost Segregation Study Tool, you gain clearer insights into your property’s tax advantages and can make more informed investment decisions. Accelerate your tax savings and enhance your investment’s financial performance with this essential tool.