Free estimator. Real engineering data. Designed to help rental property owners understand the difference between standard depreciation and an accelerated study — before you order one.
Both methods are IRS-compliant. The difference is timing: cost segregation front-loads deductions into years 1–5 instead of spreading them evenly over 27.5 years.
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A certified engineer walks every component, prices it against RSMeans, and assigns the correct MACRS class per Rev. Proc. 87-56.
Full studies include component photos, cost detail, and a signed engineer's report — complying with the IRS Audit Techniques Guide.
Order today and receive the study in ~21 days. Fits the current tax year if placed in service before December 31.
Every figure traces back to a citable source. No black box.
Component-level costs are derived from RSMeans Building Construction Cost Data, 2025 Q4, the reference used by engineering-based studies industry-wide. Regional multipliers are applied per ZIP during a full study; this calculator uses national averages.
Building components are assigned recovery periods under Rev. Proc. 87-56 and IRS Pub. 946.
The One Big Beautiful Bill Act (July 2025) permanently restored 100% bonus depreciation under IRC §168(k) for property placed in service on or after January 19, 2025. Earlier placed-in-service dates fall under the TCJA phase-down.
Bonus applies only to short-life assets reclassified into 5-, 7-, or 15-year MACRS classes — not to 27.5/39-year structural basis.
Full studies delivered via Cost Seg Smart conform to the IRS Audit Techniques Guide for Cost Segregation (revised June 2022), including detailed surveys, cost breakdowns, asset photographs, and an engineering review signed by a credentialed analyst.
The estimator uses national-average reclassification percentages by property type. Expected variance vs. a full engineering-based study: ±8–12% for residential, ±6–9% for commercial.
A full study examines the actual property — line-item cost segregation with photos, site notes, and an engineer's signature. This calculator is for deciding whether a study is worth ordering.
A bound engineering report from Cost Seg Smart identifying every depreciable component by MACRS class, photographed and priced against RSMeans regional data. Includes tax-form-ready schedules (Form 4562) and an audit defense file.
Turnaround is typically under 1 hour — no site visit needed. Reports are delivered by email as a CPA-ready PDF.
Yes, for properties under $1M with standard residential configurations. Cost Seg Smart's $495 and $795 pricing tiers reflect workflow standardization and volume — the engineering process is systematized and the marginal cost per property is low once the workflow is tooled.
Larger firms charge $3–5k, which reflects overhead and not a more accurate deliverable. The report format and IRS compliance are identical.
Generally, passive rental losses only offset passive income. Two exceptions commonly apply:
Real estate professional status under IRC §469(c)(7) — requires 750+ hours and more than half of personal services in real property trades.
Short-term rental loophole — average guest stay ≤ 7 days with material participation, treated as non-passive under Reg. §1.469-1T(e)(3)(ii).
Consult your CPA before acting on this calculator's output.
costsegtool.com is operated by Cost Seg Smart, a licensed cost segregation firm that performs engineering-based studies for residential and commercial real estate investors nationwide.
The calculator is free to use. When you're ready to order a study, the "Order full study" button takes you to costsegsmart.com/#pricing. Independent firm reviews are aggregated at costsegregationreviews.com.
Primary residences (not depreciable), raw land (no building basis), and short-hold properties where recapture risk dominates. Owners with marginal bracket under 22% may find study fees exceed savings.
Order an engineering-based cost segregation study from Cost Seg Smart. Starting at $495. Delivered in under 1 hour — no site visit needed.