What components are reclassified in a cost segregation study?

Personal property (carpeting, fixtures, decorative elements): 5-year MACRS. Land improvements (parking lots, landscaping, fencing): 15-year MACRS. Structural components remain 39-year (commercial) or 27.5-year (residential rental).

What is the typical ROI of a cost segregation study?

For a $2M commercial property, a study typically costs $8,000–$15,000 and generates $100,000–$300,000 in accelerated first-year deductions. At a 35% effective rate, that is $35,000–$105,000 in tax savings year one.

Does cost segregation trigger depreciation recapture on sale?

Yes. Sections 1245 (personal property) and 1250 (real property) recapture apply on sale. Accelerated depreciation is taxed at ordinary rates (25% for Section 1250, up to 37% for Section 1245) on gains attributable to prior depreciation.

Cost Segregation Allocation Calculator

Estimate tax savings from cost segregation study on commercial or residential rental property. Reclassifies components from 39/27.5-year to 5/7/15-year MACRS, accelerating depreciation deductions.

Principal ($)

Annual Rate (%)

Years

Compounding / Year

$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.

How It Works

Estimate tax savings from cost segregation study on commercial or residential rental property. Reclassifies components from 39/27.5-year to 5/7/15-year MACRS, accelerating depreciation deductions

Each component has a specific meaning:

Cost segregation study on commercial or residential rental property — The cost segregation study on commercial or residential rental property recorded for the scenario being assessed.

Note: Interpret the cost segregation result against the thresholds and context described above.

How to Use

Enter the cost segregation study on commercial or residential rental property for the scenario you are assessing. Estimate tax savings from cost segregation study on commercial or residential rental property. Reclassifies components from 39/27.5-year to 5/7/15-year MACRS, accelerating depreciation deductions. Use the cost segregation result to inform your calculation.

Related Calculators

MACRS 5-Year

Finance & Accounting

Bonus Depreciation

Finance & Accounting

Section 179

Finance & Accounting

Cost Segregation Allocation Calculator

How It Works

How to Use

Related Calculators

Frequently Asked Questions

What components are reclassified in a cost segregation study?

What is the typical ROI of a cost segregation study?

Does cost segregation trigger depreciation recapture on sale?