COST SEGREGATION / USING THE DEDUCTION
Could you use a cost segregation deduction?
Learn how a deduction could help your rental, whether you could use it against other income, and when the benefit might reach you.
UNDERSTAND YOUR DEDUCTION
Three ways a deduction could help.
Cost segregation brings some depreciation forward. Your situation determines how you can use it.
- Reduce taxable rental profit
- Offset other income, if eligible
- Carry passive losses into future years
No address, tax return, or exact numbers needed.
YOUR DEDUCTION OUTLOOK
- Income it may offset
- When you may benefit
Example: how a deduction reduces taxable rental profit
Your path, explained
Can it also reduce tax on my paycheck or business income?
Your answers & how this guidance works
This is an educational screening, not a tax eligibility determination. IRS Publication 925 explains passive losses and participation; Publication 946 explains depreciation. Your answers show possible paths, not a final determination of the amount you can deduct.
PREPARING YOUR ESTIMATE
Calculating your estimate.
- Checking your property details
- Estimating the land and building split
- Calculating your depreciation range
Checking your details…
YOUR PROPERTY / YOUR ESTIMATE
ESTIMATED BASIS TO RECLASSIFY
The portion of your building basis that could move into shorter depreciation schedules.
POTENTIAL TAX SAVINGS
How your purchase price breaks down
Estimated land
Remaining building basis
Using the midpoint of your rangePotential shorter-life basis
Midpoint shown; full range aboveWhat’s included in this estimate?
For this estimate, your purchase date is assumed to match the month your property was first available for rent. An earlier purchase date may change bonus eligibility. Assumes a qualifying purchase, full rental use, and purchase price as the starting basis. Land is estimated automatically. Separate improvements, furnishings, closing costs, prior depreciation, exchanges, tax elections, and personal-use conversions need review in your full report.
The tax illustration is the estimated bonus deduction multiplied by your federal tax rate. It excludes regular depreciation, state taxes, and limits on using rental losses. It is not a refund quote or a completed cost segregation study.
FROM ESTIMATE TO DOCUMENTED REPORT
Turn your estimate into a documented report.
Get a rigorous, engineering-based cost segregation report with documented asset classifications and detailed depreciation schedules.
Your estimate is a starting point. Your full report documents the property’s classifications and depreciation schedules.