Cost Segregation ROI Calculator

Estimate Your Year 1 Tax Savings

Strategic Planning Advisors, LLC | Clinton Township, Michigan

💡 What is Cost Segregation?

Cost segregation accelerates depreciation by identifying property components that can be depreciated over 5, 7, or 15 years instead of the standard 27.5 or 39 years. This creates massive upfront deductions—often $100K–$500K+ in Year 1—allowing real estate investors to offset W-2 income (when combined with REPS) or defer taxes on real estate gains.

📊 Property Information

Full purchase price (including land)
Land cannot be depreciated
Bonus depreciation varies by year

🔧 Cost Segregation Assumptions

Typical range: 5-15% of depreciable basis
Typical range: 10-20% of depreciable basis
Year property was placed in service
Federal + state combined rate

⚡ Power Combinations That Multiply Savings

  • REPS + Cost Segregation: Offset W-2 income with unlimited passive losses (save $50K–$200K+ in Year 1)
  • STR Treatment + Cost Segregation: 7-day average stays can qualify for non-passive losses without REPS (100–500 hours participation)
  • 1031 Exchange + Cost Segregation: Defer capital gains AND accelerate depreciation on replacement property
  • Catch-Up Depreciation (Form 3115): Retroactively claim missed depreciation on older properties

🤔 Is Cost Segregation Right for You?

  • Property value $400K+
  • Recently purchased (last 3 years)
  • Commercial or multifamily
  • High taxable income to offset
  • REPS qualified or STR property
  • Planning to hold 5+ years
  • Property value under $250K
  • Planning to sell in 1-2 years
  • No taxable income to offset
  • Passive investor with no REPS
  • Fully depreciated properties
  • Low-value improvements

Ready to Unlock Your Tax Savings?

Schedule a Strategic Tax Blueprint to see if cost segregation makes sense for your portfolio.

Schedule Your Blueprint →

Strategic Planning Advisors, LLC

Clinton Township, Michigan

www.reitaxcpa.com

DISCLAIMER: This calculator provides estimates for educational purposes only and should not be relied upon as tax, legal, or financial advice. Actual results will vary based on property characteristics, IRS regulations, and individual tax situations. Consult with a qualified tax professional before making decisions.

Strategic Planning Advisors, LLC provides tax advisory, CFO, and IRS resolution services.

Information provided on this site is for educational purposes only and does not constitute formal tax, legal, or investment advice. Please consult your advisor before making financial decisions.

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