Arete TOOLS · REAL ESTATE

Cost Segregation Tax Savings Estimator

Explore the first-year depreciation and potential cash tax benefit from a cost segregation study.

01 · Property basis

Total property tax basis before depreciation ($)Include capitalized acquisition costs. This model is for a new 2026 placed-in-service property.

Land value included in basis ($)

Building type

2026 placed-in-service month

02 · Cost segregation assumptions

Basis allocated to 5-year property (%)Replace these scenario percentages with your study results.

Basis allocated to 7-year property (%)

Basis allocated to 15-year property (%)

Bonus depreciation assumptionApplies only to eligible short-life components. Acquisition, use, and elections must support this choice.

Short-life depreciation conventionChoose mid-quarter if the applicable 40% test requires it.

03 · Tax benefit & study cost

Federal marginal tax rate (%)

Conforming state marginal rate (%)Use 0 if the state does not allow the modeled acceleration.

Additional deduction usable this year (%)Reduce for passive loss, at-risk, basis, or other limitations.

Study fee paid ($)Deducted as a cash cost; any separate tax deduction for the fee is excluded.