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Real Estate Tax Strategy

Cost Segregation Calculator

Discover how much cash flow you could unlock by accelerating depreciation on your real estate investments. This tool provides a preliminary estimate of your potential tax savings.

* This calculator provides an estimate only. Actual savings depend on your specific tax situation, property details, and current tax laws.

What is Cost Segregation?

Cost segregation is a strategic tax planning tool that allows real estate owners to accelerate depreciation deductions. By identifying and reclassifying personal property assets (like carpeting, lighting, and landscaping) to shorter depreciation lives (5, 7, or 15 years) rather than the standard 27.5 or 39 years, you can significantly reduce your current taxable income.

Why it matters for investors:

  • Increase Cash Flow: Deferring taxes means more cash on hand today to reinvest or cover expenses.
  • Catch-up Depreciation: You can often claim missed depreciation from prior years without amending past returns.
  • Bonus Depreciation: Take advantage of 100% (2026) bonus depreciation on eligible assets.

Ready to maximize your savings?

A calculator is a great start, but execution requires expertise. sebCFO coordinates with engineering firms to perform compliant studies and seamlessly integrates the results into your tax strategy.