Explore the numbers
Cost segregation
calculator.
See how a hypothetical short-life allocation changes first-year depreciation. Start with the example, then use your own property assumptions.
Your first-year scenario
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Compared with depreciating all of the building basis over its selected recovery period.
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- Depreciable basis, excluding land
- Assumed short-life allocation
- Building-only first-year depreciation
- First-year depreciation in this scenario
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What this tool calculates
See every assumption.
This is a simplified first-year purchase scenario for a calendar-year taxpayer using GDS and qualifying 100% bonus depreciation. It does not prepare a tax return, establish asset classifications, or calculate a prior-year §481(a) adjustment.
- Subtract land from the property's tax cost.
- Multiply depreciable basis by your assumed short-life percentage.
- In the eligible scenario, deduct that allocation using 100% bonus. Depreciate the remaining building basis using the selected 27.5- or 39-year life and the mid-month convention.
- Subtract the building-only depreciation baseline to find the additional first-year deduction. Multiply that difference by your entered federal rate for a potential tax-deferral illustration.
For the mid-month calculation, a June service date represents 6.5 months in the first calendar year. If bonus eligibility, acquisition timing or the recovery period needs review, the tool shows basis and allocation assumptions without a tax-deferral figure.
It excludes state taxes, tax basis and at-risk limits, passive-loss restrictions, excess business losses, study fees, disposal-year conventions, future lost depreciation and recapture. Short-term rental use does not by itself determine recovery period or loss usability. Construction, inherited or exchanged property, historical studies, mixed-use property and elections require individual analysis.
Methodology reviewed September 11, 2026. Sources: IRS Publication 946, Notice 2026-11, and Publication 925.