A planning conversation starter

Cost-segregation scenario estimator

Compare a building-life baseline with one simple scenario using a share you choose to model over a shorter recovery period.

Illustrative estimate only. These are illustrative estimates based on the inputs and assumptions you provide. Use them for discussion with a qualified tax professional. This is not tax advice, does not determine whether property qualifies, and does not guarantee tax savings or an audit outcome.

01

Set your assumptions

Starting values are sample inputs. Replace them with your own scenario.

User-provided building basis; exclude land and enter depreciable basis only.

Choose the baseline period to compare with your assumed allocation.

This is your scenario assumption, not a classification or qualification result.

Recovery period assumed for allocated property

Choose one period for the share above. Both options are cited in source [4].

02

Illustrative depreciation comparison

Straight-line arithmetic · 10 full years · no tax savings amount

Year 1 · building baseline$36,364All entered basis over 27.5 years · source [4]
Year 1 · assumed allocation scenario$69,09120% modeled at 5 years; the remainder at 27.5 years

Annual and cumulative amounts

Amounts are rounded to whole dollars for display.

  1. Year 1

    Annual · building baseline$36,364
    Annual · allocation scenario$69,091
    Cumulative · building baseline$36,364
    Cumulative · allocation scenario$69,091

  2. Year 2

    Annual · building baseline$36,364
    Annual · allocation scenario$69,091
    Cumulative · building baseline$72,727
    Cumulative · allocation scenario$138,182

  3. Year 3

    Annual · building baseline$36,364
    Annual · allocation scenario$69,091
    Cumulative · building baseline$109,091
    Cumulative · allocation scenario$207,273

  4. Year 4

    Annual · building baseline$36,364
    Annual · allocation scenario$69,091
    Cumulative · building baseline$145,455
    Cumulative · allocation scenario$276,364

  5. Year 5

    Annual · building baseline$36,364
    Annual · allocation scenario$69,091
    Cumulative · building baseline$181,818
    Cumulative · allocation scenario$345,455

  6. Year 6

    Annual · building baseline$36,364
    Annual · allocation scenario$29,091
    Cumulative · building baseline$218,182
    Cumulative · allocation scenario$374,545

  7. Year 7

    Annual · building baseline$36,364
    Annual · allocation scenario$29,091
    Cumulative · building baseline$254,545
    Cumulative · allocation scenario$403,636

  8. Year 8

    Annual · building baseline$36,364
    Annual · allocation scenario$29,091
    Cumulative · building baseline$290,909
    Cumulative · allocation scenario$432,727

  9. Year 9

    Annual · building baseline$36,364
    Annual · allocation scenario$29,091
    Cumulative · building baseline$327,273
    Cumulative · allocation scenario$461,818

  10. Year 10

    Annual · building baseline$36,364
    Annual · allocation scenario$29,091
    Cumulative · building baseline$363,636
    Cumulative · allocation scenario$490,909

These are illustrative estimates based on the inputs and assumptions you provide. Use them for discussion with a qualified tax professional. This is not tax advice, does not determine whether property qualifies, and does not guarantee tax savings or an audit outcome.

How to read this estimate

A simplified model with visible limits

  • This simplified illustration uses straight-line arithmetic for every selected period and shows ten full years.
  • The entered percentage is your assumption for the share modeled at 5 or 7 years. The remaining share stays at the selected building baseline.
  • The model does not classify building components, determine eligibility, or account for placed-in-service conventions, bonus depreciation, Section 179, recapture, state rules, tax rates, or your tax situation.
  • A depreciation comparison is not a tax-savings calculation. A qualified tax professional should review property details and current rules before you rely on any treatment.
Recovery-period research reference

The supplied research snapshot cites [4] for 5- and 7-year tangible personal property and 27.5-year residential rental and 39-year nonresidential real property recovery periods. Its complete bibliography was truncated, so this page preserves the snapshot citation marker without inventing missing source details.

Residential rental baseline: 27.5 years, source [4]. Nonresidential real property baseline: 39 years, source [4]. Short-life scenario choices: 5 or 7 years, source [4].