Use our cost segregation calculator to estimate the accelerated depreciation and potential tax savings available for your commercial or investment property. Enter a few property details to see your preliminary results and whether an engineering-based cost segregation study could make sense for you.
Calculate My Tax SavingsYour calculator result is a starting point. See what the estimate represents and how property information can translate into a potential depreciation opportunity.
A cost segregation calculator estimates the potential accelerated depreciation and tax savings associated with a commercial or investment property. It uses property information such as basis, property type, acquisition details, and tax assumptions to provide a preliminary estimate before a property-specific cost segregation study is performed.
The calculator begins with property-specific inputs used to establish the preliminary estimate. More complete information can help produce a more useful starting point for evaluating the property.
Calculator results are preliminary estimates and are not a substitute for a property-specific cost segregation study or professional tax advice.
A cost segregation study identifies property components that may qualify for shorter depreciation recovery periods, potentially improving near-term cash flow.
The analysis begins by determining the portion of the property's basis that is depreciable. Land is not depreciable, so an appropriate land allocation is important before estimating potential accelerated depreciation.
What This Step Considers
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Practical guidance from CSA Partners on depreciation strategies, cost segregation, tax planning, and building a defensible study.
1245 Exchange™
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Chris Streit discusses reverse cost segregation, Section 1245 exchanges, depreciation recapture, and tax planning considerations when selling depreciated real estate.
Cost Seg + 1245X™
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Chris Streit discusses cost segregation, bonus depreciation, and strategies related to depreciation recapture when selling.
Strategy
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Toby Mathis and Chris Streit break down when a cost segregation study may make financial sense for a property owner.
Investors
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Explore bonus depreciation, retroactive catch-up opportunities, and considerations for property owners and CPAs.
Tax Planning
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Understand bonus depreciation and what current rules may mean for property owners evaluating the timing of a study.
Tax Update
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A discussion of cost segregation, depreciation strategy, and planning opportunities for real estate owners.
Audit Readiness
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Review common study mistakes and the documentation considerations that can matter when a study faces scrutiny.
1245 Exchange™
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Learn how 1245 Exchange™ may address depreciation recapture exposure when certain real estate is sold.
Learn how to interpret your cost segregation calculator estimate, what goes into an engineering-based cost segregation study, and what to expect if you decide to move forward with CSA Partners.
The cost segregation calculator provides a preliminary estimate based on the property information you enter. However, actual depreciation results depend on the property's basis, land value, asset composition, improvements, tax circumstances, and the findings of a completed cost segregation study.
CSA Partners study fees begin at $3,000 and vary based on the size and scope of the project. For qualifying properties, the potential tax benefit can significantly exceed the study fee. In addition, a no-cost Benefit Analysis can help evaluate the expected opportunity before you move forward.
Common documentation includes the property address, acquisition date, purchase closing statement, and depreciation schedule if available, along with building cost information. Construction drawings may also be helpful, although they are not always required.
Potentially. A cost segregation study can be performed after the year a property was placed in service. As a result, eligible property owners may be able to claim previously missed depreciation through an accounting method change using IRS Form 3115, rather than amending each prior-year return. Learn more about cost segregation for existing properties and how an engineering-based study can identify eligible depreciation opportunities.
Cost segregation is an established tax strategy supported by IRS guidance. However, the quality of the study and its documentation matter. CSA Partners performs engineering-based cost segregation studies designed around the IRS Cost Segregation Audit Techniques Guide, with detailed documentation supporting the classifications used in the study. Learn more about CSA Partners' cost segregation process.
A study is commonly performed after a property is purchased, constructed, or renovated and placed in service. However, property owners may also pursue cost segregation in a later tax year. When eligible, missed depreciation may then be addressed through a change in accounting method.
Your cost segregation calculator result gives you an initial estimate of the potential opportunity. From there, CSA Partners can prepare a no-cost Benefit Analysis to provide a more property-specific evaluation. That review can help determine whether an engineering-based cost segregation study makes sense for the property.
No. A cost segregation calculator provides a preliminary estimate based on the property information you enter. A cost segregation study is a property-specific analysis that identifies, documents, and classifies eligible building components for depreciation purposes. The calculator can help evaluate the potential opportunity before deciding whether to pursue a full study.
Your calculator results are a starting point. Book a meeting with a CSA Partners specialist to discuss your property, potential tax savings, and whether an engineering-based cost segregation study makes sense.
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