Follow the default numbers.
With total property basis of $1,000,000, the model gives first-year incremental tax saving: $62,933.
The formula is eligible short-life basis × bonus rate + remaining scheduled depreciation. Open the breakdown to trace expenses and assumptions. Change one input at a time to see how your decision changes. This example uses scenario inputs; it is not an offer, tax bill, appraisal or legal determination.
Allocation is an input, not an engineering finding
A cost segregation study may identify eligible short-life components and land improvements within acquired or constructed property. This estimator uses your chosen allocation percentages rather than pretending to inspect the building. Nondepreciable land is removed first. The short-life and land-improvement percentages cannot exceed one hundred percent together.
Bonus eligibility is date and asset specific
The bonus percentage is entered explicitly. The post-January 19, 2025 rules can allow one hundred percent for eligible acquired property, but contract, acquisition, placed-in-service and asset conditions matter. Buildings themselves do not become bonus-eligible merely because a study is prepared. Electing out, state decoupling and special transitional provisions can change the treatment.
The first-year comparison is simplified
The model applies bonus to the eligible allocation, then illustrative first-year MACRS factors to the remaining short-life basis. It assumes all short-life allocation is five-year property and a half-year convention; seven-year or mid-quarter treatment requires a different schedule. The building remainder uses the selected residential or commercial mid-month baseline. The assumptions are printed with the result.
Deductions do not guarantee immediate savings
The tax-savings estimate multiplies additional first-year deduction by the entered marginal rate. Passive activity, at-risk, business-loss and other limitations can defer use of deductions. The study fee is shown separately and future recapture can offset timing benefits. A CPA and a qualified study provider should confirm classification, eligibility and actual usable savings.
Keep your assumptions with the result
Save the calculation to your deal file to reuse compatible inputs in another tool. The file stays in this browser on this device. Download the CSV to open the complete inputs, results and schedule in Excel or Google Sheets. Use PDF to print the report or save it as a PDF. A share link includes entered financial figures in its URL, so use it only with people you intend to share those numbers with.