Calculator Documentation
Cost Segregation Estimator
Estimate first-year bonus depreciation and tax savings from a cost seg study
Schema version 1.0.0 · Category: investment
Inputs
Property
The building being studied
| Field | Type | Default | Notes |
|---|---|---|---|
| Purchase Price | currency | $800,000 | Total acquisition cost including the building |
| Land Value | percentage | 20.00% | Land is never depreciable (20-30% typical) |
| Property Type | select | 27.5 | Sets the straight-line recovery period |
| Reclassified to Short-Life | percentage | 25.00% | Cost seg studies typically move 20-35% of basis into 5/7/15-year property |
Tax Situation
How the deduction converts to savings
| Field | Type | Default | Notes |
|---|---|---|---|
| Marginal Tax Rate | percentage | 35.00% | Combined federal + state marginal rate |
| Bonus Depreciation | percentage | 100.00% | 100% for property placed in service after Jan 19, 2025 |
| Cost Seg Study Fee | currency | $5,000 | Engineering study fees run $3k-15k by property size |
Calculations
Every figure this calculator produces, in evaluation order. Formulas reference input ids, parameters, and earlier calculations.
depreciableBasisBuilding basis (land excluded)
purchasePrice * (1 - landPercent)
reclassifiedAmountBasis moved to 5/7/15-year property
depreciableBasis * reclassPercent
bonusDeductionImmediate bonus depreciation on the reclassified basis
reclassifiedAmount * bonusPercent
remainingBasisYear1Year-1 straight-line on the remaining long-life basis
(depreciableBasis - reclassifiedAmount) / propertyType
yearOneTotalDeductionTotal first-year depreciation with the study
bonusDeduction + remainingBasisYear1
straightLineYear1First-year depreciation without a study
depreciableBasis / propertyType
additionalDeductionExtra first-year deduction the study unlocks
yearOneTotalDeduction - straightLineYear1
firstYearTaxSavingsFirst-year cash tax savings from the study
additionalDeduction * marginalTaxRate
netBenefitSavings net of the study fee
firstYearTaxSavings - studyCost
roiMultipleSavings per dollar of study cost
firstYearTaxSavings / max(studyCost, 1)
studyNotWorthItFlag: 0 = study pays for itself in year one
if(netBenefit > 0, 0, 1)
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