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Use our free engineering-based calculator to estimate your first-year tax savings in less than 60 seconds.
Enter a few details to model depreciable basis, accelerated depreciation, bonus depreciation, and potential first-year tax savings.
Our calculator estimates accelerated depreciation using a simple version of the same inputs that matter in an engineering-based cost segregation study.
This provides an estimate only. Every engineering study is customized to the property.
Ready for a property-specific review? Submit the form below and Cascade Cost Seg will follow up with a custom analysis.
A cost segregation study identifies building components that may qualify for shorter depreciation lives, including certain 5-year, 7-year, and 15-year property. Instead of depreciating the entire building over 27.5 or 39 years, an engineering-based study separates qualifying components so eligible deductions can be accelerated.
For real estate investors, that acceleration can reduce taxable income, improve cash flow, and create more room to reinvest. The estimate on this page is designed to help you understand the possible first-year benefit before requesting a property-specific review.
A cost segregation study is a detailed analysis of a real estate asset that breaks the property into tax depreciation categories. The study typically reviews construction details, purchase documents, site improvements, electrical systems, plumbing, finishes, specialty equipment, and other components that may qualify for accelerated depreciation.
The goal is not to create an artificial deduction. The goal is to document the proper recovery periods for the property components under current tax rules.
Bonus depreciation can make the first-year benefit much larger because eligible short-life property may be deducted immediately based on the rules for the placed-in-service year. The calculator uses 100% bonus for 2018 through 2022, 80% for 2023, 60% for 2024, and 100% for 2025 and later.
If bonus depreciation rules change or your property has a special fact pattern, your CPA should review the final treatment before filing.
Land is not depreciable, so the calculator removes land value before estimating the building's depreciable basis. The default land value is 20% of the purchase price because that is a common starting point for quick modeling, but actual land allocation can vary by market, appraisal, purchase agreement, and local property records.
If you already have a better land estimate, enter it manually so the result is closer to your real facts.
Many investment properties can benefit from cost segregation, including multifamily, short-term rentals, self storage, retail, office, industrial, and hotel properties. The best candidates usually have a meaningful building basis, strong taxable income to offset, and components that can be separated into shorter recovery periods.
New purchases, renovations, ground-up construction, and older properties can all be reviewed.
The cleanest time to order a study is shortly after acquisition, renovation, or construction, especially before the tax return is finalized. That gives your CPA time to review the report, apply the depreciation schedules, and coordinate the deduction with your broader tax plan.
If you already filed returns for prior years, a lookback study may still be possible.
This calculator is directionally useful, not exact. It uses property-type allocation percentages based on historical engineering study ranges, but the final numbers depend on your property, documents, improvement history, and tax situation. A full study may produce higher or lower results.
Use the estimate as a planning tool, then request a free analysis before making decisions.
If you acquired a property in a prior year and did not complete cost segregation, you may be able to catch up missed depreciation with an accounting method change. This is commonly handled with Form 3115 and can allow eligible deductions to be taken without amending prior returns.
Your CPA should determine whether a lookback study fits your filing history and current tax position.
A quality study relies on construction knowledge, quantity takeoffs, document review, and tax guidance. That engineering-based process is what separates a real deliverable from a generic percentage estimate. It also gives your CPA a defensible report and depreciation schedule.
Cascade Cost Seg focuses on practical, investor-friendly studies that are built to be used by tax professionals.
No. It provides a rough estimate based on general property type assumptions. A full engineering-based study is required for a property-specific result.
Depreciable basis is generally the building portion of the property value after removing land value. Land is not depreciable.
Bonus depreciation rules vary by year. The calculator uses TCJA assumptions for years before 2025 and 100% bonus depreciation for 2025 and later.
Yes. Short-term rentals may benefit significantly from cost segregation, especially when the owner's tax situation allows the deductions to offset income.
Yes. Cascade Cost Seg provides the engineering-based study, but taxpayers should work with their CPA or tax advisor to apply the results correctly.
Possibly. If you placed the property in service in a prior year and did not complete a study, your CPA may be able to use a lookback method with Form 3115 to claim missed depreciation.
Helpful documents include the closing statement, purchase price allocation, appraisal if available, renovation budget, construction invoices, and basic property details. Cascade Cost Seg can usually start with limited information and request more if needed.
No calculator can guarantee that. The final report depends on actual building components, land allocation, tax rules, and documentation. This estimate is meant to help investors decide whether a full analysis is worth exploring.