Unlock Potential Tax Savings with Our New Cost Segregation Calculator
If you own investment property or commercial real estate, you probably already know about depreciation. But here’s a powerful secret many owners overlook: you do not have to wait years, or even decades, to depreciate certain parts of your property.
Through a strategy called cost segregation, you can accelerate depreciation on certain components with a shorten lifespan - like lighting, flooring, landscaping, and fixtures - allowing you to deduct their value over 5, 7, or 15 years instead of the standard 27.5 or 39 years. With certain assets, you can even depreciate 100% of the costs of these items in the year of acquisition. You can learn more about bonus depreciation on our blog post on this topic.
That means bigger deductions now, more cash in your pocket, and a stronger financial position for future investments.
What is Cost Segregation?
Cost segregation is a tax planning method that breaks your property into different categories:
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Tangible Personal Property (e.g., appliances, equipment)
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Land Improvements (e.g., paving, landscaping)
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Structural Components (e.g., walls, roof, HVAC)
By reclassifying assets in specific categories, you are able to accelerate depreciation on qualifying items, reducing your taxable income in the early years of ownership.
Big Beautiful Bill
STR investors and operators can now deduct the 100% of the cost of eligible assets - like furniture, appliances, and upgrades - in the year they’re placed into service. That means that, instead of spreading deductions over several years, you can take them all in the year that it is placed into service. This turbocharges your ROI and lowers your taxable income immediately. In some instances, this can even reduce your W-2 or other income.
How to benefit:
- Purchase, furnish or upgrade your STR before the end of the tax year
- Ensure your property is “in service” (available to rent) by the end of the year
- Talk to your CPA about cost segregation studies to maximize eligible deductions
- You can estimate your accelerated depreciation using our cost segregation calculator
- Run your numbers carefully. Rinse and repeat. This provision alone could save you thousands
Introducing the Cost Segregation Calculator
To help you understand the possible impact of a purchase, we’ve launched our Cost Segregation Calculator - a quick, user-friendly tool that estimates your potential savings from accelerated depreciation.
With it, you can:
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Estimate tax savings and extra cash flow
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Compare standard versus accelerated depreciation for an asset
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Make more informed decisions about property purchases, remodels, or construction
Whether you’ve recently purchased, built, or renovated property, this tool is invaluable in estimating the potential impact of a property purchase.
Take the Guesswork Out of Tax Planning
Tax savings can directly impact your ability to reinvest, grow your portfolio, and improve your financial stability. With the Cost Segregation Calculator, you’re no longer estimating. You’re proactively planning with clarity and precision.
Ready to See Your Potential Tax Savings?
Click here to try our Cost Segregation Calculator now →
Find out how much you could save, boost your cash flow, and make your money work harder for you.
Reach out with questions or for help with building your real estate portfolio.
