Estimate Your Savings
Our Cost Segregation Calculator helps commercial property owners understand the potential tax benefits of accelerated depreciation. By reclassifying building components from 27.5 or 39-year property to 5, 7, or 15-year property, you can significantly increase cash flow through larger immediate tax deductions.
Simply enter your property information below to receive an estimate of potential tax savings. This calculation provides a general overview – for a detailed analysis of your specific property, our engineering-based study would identify all qualifying components.
Please note that actual results may vary based on your property’s unique characteristics, acquisition date, and tax situation. The calculator assumes current tax laws and does not constitute tax advice.
Estimated Tax Savings
Accelerated Depreciation Deduction
Standard Straight-Line Depreciation Deduction
Accelerated Depreciation Deduction
Standard Straight-Line Depreciation Deduction
Your results show estimated first-year tax savings based on typical properties similar to yours. The Conservative Estimate shows what most property owners like you can expect at minimum, while the High-End Estimate shows what’s possible with a thorough professional analysis. These numbers represent actual cash you could save on taxes. For a personalized assessment that accounts for your property’s specific features, continue with our no-cost analysis request.
Tax Savings Analysis
Get Your Personalized Cost Segregation Estimate
Want to share these potential tax savings with your CPA, tax advisor, or wealth manager? Download a professional PDF report of your estimated benefits.This preliminary estimate is based on general property characteristics and industry averages. Actual results may vary depending on your property’s specific components, construction details, and individual tax situation. This estimate does not constitute a formal cost segregation study, tax advice, or guarantee of results. Please consult with your tax professional before making any tax-related decisions.
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The CSSI Advantage: Strategic Cost Segregation
Eligibility
A commercial cost segregation study can benefit property owners with buildings or improvements placed in service after 1986 that have a remaining depreciable basis. Properties should have a cost basis of at least $200,000. The study works for both newly constructed buildings and properties owned for many years.
Reduce Tax Liability
Our engineers identify qualifying components that may represent 20-40% of your building’s value, creating significantly larger tax deductions that can reduce your income tax liability by thousands of dollars annually.
Free Up Cash Flow
Access your depreciation benefits sooner rather than later, providing additional working capital that can be reinvested in your business, used for property improvements, or help fund your next real estate investment.
Ongoing Support
We work directly with your tax professional to implement study findings and provide continued assistance to ensure seamless integration with your overall tax strategy.
Unmatched Expertise
With over 55,000 successful studies completed and never having triggered an IRS audit, our industry-leading professionals deliver superior results you can trust.
Start Reducing Your Tax Burden Now
Discover the hidden tax benefits for your property or business with our no-cost preliminary analysis. Our experts will evaluate your eligibility and estimate your potential savings with no obligation.
Frequently Asked Questions
How to calculate cost segregation
Calculating cost segregation involves breaking down a building’s total cost into individual components that qualify for accelerated depreciation. Instead of depreciating the entire property over 27.5 or 39 years, certain parts like carpeting, lighting, electrical systems, and land improvements can be depreciated over 5, 7, or 15 years, resulting in significant tax savings.
The process starts with a detailed engineering-based analysis. Experts examine construction costs, blueprints, invoices, and property details to identify assets eligible for shorter depreciation schedules. Each identified component is then assigned a specific recovery period under IRS guidelines.
The resulting study outlines the reallocation of costs into proper categories, providing a clear depreciation schedule that can be used to reduce taxable income in the early years of ownership.
CSSI specializes in conducting these studies accurately and efficiently. Our team uses a proven methodology to ensure IRS-compliant documentation and maximum benefit for each client.
What is a Cost Segregation Savings Calculator?
A Cost Segregation Savings Calculator helps property owners estimate potential tax savings by accelerating depreciation on property components. By inputting your purchase price, federal tax rate, and service dates, it provides both conservative and high-end savings estimates based on your property’s characteristics.
Does the calculator take into account bonus depreciation?
Yes, the calculator incorporates bonus depreciation benefits, which has been restored to 100% for qualifying assets. This means items like HVAC systems, lighting fixtures, electrical systems, flooring, cabinetry, and specialized equipment can be fully deducted in year one when combined with cost segregation, significantly increasing your immediate tax savings shown in the results.
How can a Real Estate Cost Segregation Savings Calculator help my business?
The calculator helps you quickly assess how much you could save through cost segregation by showing the difference between standard depreciation and accelerated depreciation methods. This allows you to make informed decisions on maximizing tax benefits and improving cash flow for your real estate investments.
What information do I need to use the Cost Segregation Savings Calculator?
You’ll need your property’s purchase price, federal tax rate (defaulted to 37%), month and year the property was placed in service, and the tax year you’re applying the benefits to. The more accurate your input, the more precise the savings estimate.
Why should I use the Real Estate Cost Segregation Savings Calculator?
Using the calculator gives you a quick estimate of potential savings from cost segregation, showing both conservative and high-end scenarios. This helps you determine if a full professional study is worthwhile for your property investment before committing to the process.
How accurate is the estimate from the Cost Segregation Savings Calculator?
The calculator provides conservative and high-end estimates based on typical properties similar to yours. These estimates give you a general idea of potential savings, but for precise results tailored to your specific property’s unique characteristics, a professional cost segregation study is recommended.
How does the calculator show the difference between standard and accelerated depreciation?
The calculator displays “Standard Depreciation Tax Deductions” (your current method) versus “Enhanced Depreciation Tax Deductions” (with cost segregation), along with the “Additional Deductions Unlocked” and “Your Potential Tax Savings” to clearly show the financial benefit of accelerated depreciation.
How much does a cost segregation study cost and what’s the typical ROI?
The cost of a cost segregation study varies based on property type, size, and complexity. To receive your personalized study cost estimate, you’ll need to complete our full no-cost analysis request. However, most clients see a return on investment of 5:1 to 20:1, meaning they typically save $5 to $20 in taxes for every $1 spent on the study.
