CalculateRealEstateROI

Tax Strategy

Cost Segregation Study

Engineering study that reclassifies building components into shorter depreciation lives (5/7/15 yr).

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

Plain-English explanation

Pulls 20–30% of building basis into the first 5 years, supercharging early-year deductions.

Examples

  • $1M property → $300k accelerated depreciation in year 1 via cost seg + bonus.

Common mistakes

  • Doing cost seg without a passive-loss outlet (REPS or STR exception).

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