CalculateRealEstateROI

Tax Concepts

Cost Segregation Study

Engineering study breaking property components into shorter-life depreciation classes.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Plain-English explanation

Accelerates depreciation; can shift 20-35% of basis to 5/7/15-year classes.

Examples

  • $1M building basis: $300k reclassified to short-life = ~$200k year-1 depreciation.

Common mistakes

  • Cost seg without bonus depreciation aware planning.

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