Cost Segregation Calculator

Estimate tax savings from a cost segregation study by reclassifying building components into shorter depreciation schedules with bonus depreciation.

Financial Disclaimer

This calculator is for educational purposes only and does not constitute financial advice. Results are estimates based on the inputs provided. Consult a qualified financial advisor before making investment or financial planning decisions.

Inputs

Building Value ($)

Land Value ($)

Personal Property (%)

Land Improvements (%)

Federal Tax Rate (%)

State Tax Rate (%)

Cost Seg Study Fee ($)

Bonus Depreciation (%)

Tab to move between fields

Results

Year 1 Tax Savings

$39,289.09

5-Year Tax Savings$37,545.45

Net Benefit (after study cost)$29,289.09

ROI on Study Cost292.89%

Additional Year 1 Depreciation$93,545.45

Cost Seg Year 1 Depreciation$111,727.27

Standard Annual Depreciation$18,181.82

Personal Property Reclassified$100,000

Land Improvements Reclassified$50,000

Depreciable Basis$500,000

Total Property Value600,000

Pv Benefit37,807

How to Use This Calculator

Enter Building Value (excluding land) and Land Value for your commercial or investment property.
Set Personal Property % (e.g. 20% for fixtures, appliances) and Land Improvements % (e.g. 10% for parking).
Enter your Federal Tax Rate and State Tax Rate for accurate tax savings calculations.
Input the Cost Segregation Study Fee (typically $5,000–$15,000) to see net benefit after study cost.
Set the Bonus Depreciation % based on the tax year (60% in 2024, phasing down 20%/year).
Review Year 1 Tax Savings and ROI on Study Cost to decide if cost segregation is worth pursuing.

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