Cost Segregation Rechner — Formel

## Cost Segregation Studies

Cost segregation accelerates depreciation by reclassifying building components from the standard 27.5 or 39-year schedule to 5, 7, or 15-year property.

### Standard vs. Accelerated Recovery

- **39-year property**: Building structure (commercial)
- **27.5-year property**: Residential rental structure
- **15-year property**: Land improvements (parking lots, landscaping, fences)
- **7-year property**: Certain fixtures and equipment
- **5-year property**: Carpeting, appliances, decorative lighting

### Bonus Depreciation

With bonus depreciation (phasing down from 100%), reclassified property can be fully deducted in year one, dramatically increasing first-year tax benefits.

### Typical Results

A cost segregation study typically reclassifies 20-40% of building cost, generating significant upfront tax savings.

Lösungsbeispiel

A $1,000,000 commercial building. 15% reclassified to 5-year, 5% to 7-year, 10% to 15-year. 35% tax rate. $15,000 study cost.

  1. 5-year property: $1,000,000 x 15% = $150,000 (year 1: $150,000 x 20% = $30,000)
  2. 7-year property: $1,000,000 x 5% = $50,000 (year 1: $50,000 x 14.29% = $7,145)
  3. 15-year property: $1,000,000 x 10% = $100,000 (year 1: $100,000 x 5% = $5,000)
  4. Remaining 39-year: $700,000 (year 1: $700,000 / 39 = $17,949)
  5. Accelerated year 1 total: $30,000 + $7,145 + $5,000 + $17,949 = $60,094
  6. Standard year 1: $1,000,000 / 39 = $25,641
  7. Extra first-year depreciation: $60,094 - $25,641 = $34,453
  8. Tax savings: $34,453 x 35% = $12,059