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COST SEGREGATION MADE SIMPLE

Own a rental or building? See what you could save.

A cost segregation study finds parts of your property you can deduct sooner. That may mean less tax now and more cash for your next move.

Residential: generally 27.5 yearsCommercial: generally 39 years
Residential and commercial real estate

FREE SAVINGS CALCULATOR

How much more could you save in Year 1?

Move the sliders. See the difference. Get a free quote.

Cost segregation helps you deduct eligible property costs sooner. That may lower your taxes now. Choose your property type, purchase price and federal tax rate to compare estimated Year 1 tax savings. No email or payment needed.

An engineering based study reviews property records, components and supporting cost estimates to prepare depreciation schedules your CPA can use. This calculator gives a first look using broad property assumptions; the completed study refines your results.

$1.1M
37%

Extra Year 1 tax savings

$50,280

Estimated additional federal tax savings from cost segregation.

Compare Year 1 tax savings

Without cost segEstimated federal tax savings$11,347
With cost segEstimated federal tax savings$61,627
Your estimated study fee$3,995

Estimated standard remote study fee. We confirm records, scope and final price before payment.

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No payment or card required to get started.

Estimate only. Assumes eligible property and deductions you can use. Actual results vary.

How it’s calculated

$61,627 with cost seg − $11,347 without = $50,280 extra tax savings. Figures are rounded to whole dollars so the comparison adds up.

The underlying Year 1 deductions are $30,667 without a study and $166,560 with a study. Multiply each deduction by your 37% federal tax rate to estimate the tax savings shown above.

Assumes 20% land, 16% of the building assigned to shorter life assets, and 100% federal bonus depreciation on eligible assets acquired and first used after January 19, 2025. The comparison uses a January start and 27.5 year building depreciation. The treatment of short term rentals depends on actual use.

Extra tax savings means the extra deduction multiplied by your 37% federal tax rate. This moves deductions forward; it does not increase the total cost you can deduct. State taxes, study fees and taxes on a later sale are excluded. Your CPA confirms the actual treatment and usable deductions.

IRS depreciation guidance

Is a study worth it for my property?

Use the estimate to start the conversation. Before ordering, ask your CPA:

  • Can I use the extra deductions this year?
  • Does the likely benefit justify the study fee?
  • Would prior depreciation or a future sale change the result?

Have an older rental, several buildings or major renovations? Request a written scope and quote.

THE BASICS

Same property. Deductions sooner.

Cost segregation separates qualifying parts of your building into faster depreciation schedules.

How normal depreciation works

You generally deduct the building cost over time. Land is excluded.

Residential rental
Building basis ÷ 27.5 years
Commercial building
Building basis ÷ 39 years

Usual federal schedules for a full year. The first year is prorated; special rules can apply.

How cost segregation helps

Qualifying appliances, finishes, equipment and site improvements may use shorter schedules. Eligible bonus depreciation can bring some deductions forward even faster.

You may lower taxes now if you can use those deductions. The study changes timing, not the total cost you can deduct.

Who should take a look?

Owners of rentals, apartments, storage, retail, offices and warehouses. The best starting point is enough eligible building cost and usable deductions to justify the study fee.

Your CPA checks rental loss limits and your tax situation. A personal home alone does not qualify.

Already owned the rental for a few years?

A lookback study may identify depreciation you missed. Your CPA can determine whether a Form 3115 catch up adjustment is available, using the rules from the property’s original service dates. This is not new basis, and it is not the tax recapture that can arise when you sell.

What do I send, and what does my CPA get?

Start with the free quote form. For an accepted remote study, we request purchase records, existing depreciation schedules, plans and property photos as needed. Your proposal covers the engineering based report, component schedules, supporting calculations and any applicable lookback workpapers. Your CPA handles filing. Complex properties may need a walkthrough, site visit or custom scope.

Learn more: IRS depreciation guidance · IRS rental property guidance

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YOUR PROPERTY

One building or a whole portfolio.

HOW IT WORKS

Quote first. You choose what comes next.

01

Tell us about the property

Use our short form. No documents or payment needed to start.

02

See your study price

Get an instant quote for standard properties. We confirm the scope and timing before payment.

03

Choose to move forward

Accept the proposal, then share records and property photos for remote review. Complex studies receive a custom scope.

04

Share the report with your CPA

Your CPA uses the study to determine the deductions for your return.

LET’S LOOK AT YOUR PROPERTY

Just spoke with us?

Use this form after a call, or send it to someone who needs a quote. Add the property details and we will take it from there.

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AREAS WE SERVICE

Cost segregation across California.

Rental homes, apartment buildings and commercial properties. Start online from anywhere in California.

Bay Area

San Francisco, Oakland, San Jose, Fremont and the Peninsula

Sacramento & Northern California

Sacramento, Roseville, Elk Grove, Chico and Redding

Central Valley

Modesto, Stockton, Turlock, Merced, Fresno and Bakersfield

Central Coast

Santa Cruz, Monterey, Salinas, San Luis Obispo and Santa Barbara

Los Angeles & Orange County

Los Angeles, Long Beach, Anaheim, Irvine and Santa Ana

Inland Empire & Desert

Riverside, San Bernardino, Ontario, Palm Springs and Coachella Valley

San Diego & Imperial

San Diego, Oceanside, Escondido, Chula Vista and El Centro

We confirm the study scope and any visit arrangements in your written proposal.

Explore California service areas and counties →

QUICK ANSWERS

A few things to know.

How can I save more money in taxes with my rental property?+

Start by tracking eligible rental expenses and claiming depreciation correctly. Cost segregation may help you deduct some property costs sooner. Compare the estimate with the study fee, then ask your CPA which deductions you can use.

What rental property expenses can I deduct?+

Eligible expenses can include mortgage interest, property taxes, insurance, repairs and management fees. Improvements usually have different treatment and may need to be depreciated. Keep records and separate any personal use.

How much does a cost segregation study cost?+

Standard rental home, Airbnb and condo studies start at $1,595 for properties purchased below $300,000. Select your property type and purchase price in the calculator for an instant quote. Complex properties and portfolios need a custom scope.

Can I get an instant quote without paying?+

Yes. Choose your property type and purchase price to see the study fee for a standard property. Send the short form for a written proposal. No payment or card is required.

Does cost segregation save the same amount on California and federal taxes?+

Not necessarily. California and federal depreciation rules differ, including bonus depreciation. Our calculator estimates federal savings only. Your CPA calculates any California adjustment separately.

What areas of California do you service?+

We accept rental and commercial property requests throughout California, including the Bay Area, Sacramento, Central Valley, Central Coast, Los Angeles, Orange County, Inland Empire and San Diego. Your proposal confirms the study scope and any visit arrangements.

What is cost segregation in simple terms?+

It separates parts of a rental or business property that can be written off faster, such as qualifying flooring, appliances and site improvements. Taking those deductions sooner may lower your taxes now.

What is the difference between regular depreciation and cost segregation?+

Regular depreciation spreads building deductions over many years. Cost segregation identifies parts that qualify for shorter schedules and, when eligible, bonus depreciation. The calculator compares estimated Year 1 federal tax savings both ways.

How much could a cost segregation study save me in Year 1?+

It depends on the property and your tax situation. Use the purchase price and tax rate sliders to see an estimate. Extra tax savings equals the extra Year 1 deduction multiplied by your tax rate, assuming you can use the full deduction.

Is a tax deduction the same as tax savings?+

No. A deduction reduces the income you are taxed on. Tax savings is the resulting reduction in tax. The main calculator compares tax savings. Open How it’s calculated to see the underlying deductions.

Is cost segregation worth it for a rental property?+

It may be worthwhile when the deductions you can use outweigh the study cost. Start with the calculator, get a free quote, and have your CPA compare the fee with your potential benefit.

Can I use cost segregation for an Airbnb or short term rental?+

A property used for rental activity may qualify. Personal use and your tax situation can affect the deductions you can claim. Send the property details for a review.

Can I get a study for a property I bought years ago?+

Yes. A lookback review may identify missed depreciation using the rules that applied when the property entered service. Your CPA determines whether Form 3115 and a catch up adjustment are appropriate. It does not create new basis or automatically require amending every prior return.

Do I pay anything to get a quote?+

No. Your quote is free. You receive the study scope, price and timing before deciding whether to move forward. No card is required.

What information do you need for a free quote?+

Just the full property address, property type, purchase price or construction cost, and your contact details. Add any other properties or questions in the optional note. We will ask for anything else needed.

Can I request one quote for several properties?+

Yes. Put the first property in the form and list the others in the note. We can review them together for a portfolio proposal.

Can ChatGPT explain cost segregation or help me get started?+

ChatGPT can help you understand the basics and prepare questions. A property study and your CPA establish the facts and tax treatment for your return. To get started with us, use the free quote form and select ChatGPT if that is how you found us.

How is normal depreciation calculated on a rental or commercial building?+

Under the usual federal system, residential rental buildings use 27.5 years and commercial buildings use 39 years. Divide the depreciable building basis, excluding land, by that period for a full year estimate. The first year is prorated. Special rules can change the schedule.

Who is generally a good fit for cost segregation?+

Owners of rental homes, apartments, storage, retail, office or industrial property may benefit if there are qualifying assets and usable deductions that justify the fee. Passive loss limits can delay the benefit. A personal residence alone does not qualify.

Do I get an engineering based report for my CPA?+

The quoted service is an engineering based cost segregation report with asset classifications, depreciation schedules and supporting calculations. Your proposal identifies the review scope and deliverables. Your CPA confirms eligibility and handles tax return filing.

Can a cost segregation study be done remotely with pictures?+

Many standard properties can be reviewed using purchase records, plans and property photos, with a remote walkthrough when needed. Complex layouts, incomplete records or specialized assets may require additional review or a site visit and a custom quote.

What happens if the IRS questions my study?+

Technical audit support addresses questions about the study methodology and supporting calculations with your CPA. The written proposal confirms the included support and its duration. No study guarantees IRS acceptance or a particular tax result.

When does my property need a custom quote?+

Portfolios, complex ownership or exchanges, major renovations with multiple service dates, specialized assets and extensive missing records can need extra work. We explain the scope and final price before you pay. An older purchase alone does not automatically mean a higher fee.

How accurate is this free cost segregation calculator?+

It gives an initial estimate using your inputs and broad property type assumptions. It does not inspect your property or price its individual components. Actual results can differ because of land value, condition, improvements, service dates and usable deductions.

Is a cost segmentation calculator the same as a cost segregation calculator?+

People sometimes use cost segmentation when they mean cost segregation. This tool estimates how faster depreciation could affect your federal taxes and helps you decide whether to request a study quote.

Can I file my tax return using the calculator result?+

Use it to discuss the opportunity with your CPA. The completed study provides the property specific classifications and supporting schedules needed for tax preparation. A calculator result alone is not a completed study.

What should I have ready after accepting a study quote?+

Keep your closing statement, existing depreciation schedule, improvement invoices, available plans and property photos together. We confirm the exact records needed in your scope, so you do not have to gather everything just to request a quote.

More owner questions →

Tax guidance: IRS rental property deductions · California depreciation rules

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