Closing statement, purchase agreement and appraisal
COST SEGREGATION RECORDS CHECKLIST
Updated October 9, 2026 · Individual tax treatment requires CPA review
Start with the records you have. Do not guess at what is missing.
For a free quote, start with the property address, type, purchase price or construction cost, and your contact details. If you move forward with a study, organize the closing statement, current depreciation schedule, support for land value, improvement records, available plans and property photos. The written scope should identify exactly what your property requires.
- ✓ Free quote before payment
- ✓ Scope confirmed in writing
- ✓ California statewide
WHY IT MATTERS
Start with the facts. Confirm the scope.
Good records connect the amount being depreciated to the property, its ownership, its placed-in-service history and later improvements. The closing file and land support help establish depreciable building basis. The existing fixed-asset or depreciation schedule shows what is already being claimed. Invoices, plans and photos help document later projects and physical components. Missing records should be disclosed rather than replaced with assumptions; the proposal can then confirm whether additional reconstruction or review is needed.
Plain English: you are not creating a new deduction. You are identifying when supported pieces of the property may be depreciated.
Primary guidance: IRS recordkeeping guidance · Instructions for Form 4562: permanent depreciation records
YEAR 1 COMPARISON
Regular depreciation versus accelerated depreciation.
Regular schedule: the calculator estimates Year 1 federal depreciation using the building recovery period and placed-in-service assumptions shown with the result.
With cost segregation: the same calculator applies its approved shorter-life allocation and federal bonus-depreciation assumptions, then shows the extra estimated Year 1 deduction and tax savings. Move the inputs below to compare both paths; the result is a planning estimate, not a customer fact or guaranteed deduction.
Usability check: The calculator estimates regular and accelerated Year 1 federal results from the inputs and disclosed assumptions. Your records establish the real basis, land exclusion, service dates and existing depreciation needed for a property-specific study.
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.
Extra Year 1 tax savings
$50,280Estimated 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.
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 guidanceWHAT WE REVIEW
A practical property-record checklist
Current federal and California depreciation schedules
Support for the land and building allocation
Improvement invoices, contracts and placed-in-service dates
Available plans, surveys, cost detail and property photos
Furniture, appliances and equipment already listed separately
DOES IT FIT?
Strong candidates usually have four things.
✓
Rental or business use is documented
✓
Property basis can be reconciled to owner records
✓
Missing documents are identified without guessing
✓
Your CPA can review the completed depreciation schedules
PORTFOLIO PROPOSALS
More properties. One prioritized scope.
Group shared records, similar property types and inspection needs into a written rollout plan.
2–4 propertiesGrouped scope5–9 propertiesPrioritized rollout10+ propertiesMaster proposal
STRAIGHT ANSWERS
Frequently asked questions.
What records do I need for a cost segregation study?+
For the study, organize the closing statement, current depreciation schedule, support for land value, improvement invoices, available plans and property photos. The written scope confirms which records are actually needed for your property.
Do I need every property document before I ask for a quote?+
No. Start with the full property address, property type, purchase price or construction cost, and your contact details. We will identify any additional records after reviewing the request.
Why does the study team need my current depreciation schedule?+
It shows which property costs are already being depreciated, the dates and methods used, and separately listed assets. Reconciliation helps avoid counting the same basis twice and gives your CPA a clear starting point.
What if I am missing plans or improvement invoices?+
Tell us what is missing instead of guessing. Other supported property records may help define the scope, but incomplete documentation can require extra review or a custom quote.
Why do I need support for the land value?+
Land is not depreciable. A supportable land and building allocation helps establish the building and improvement basis available for depreciation and prevents land value from entering the study.
Should later renovations be separated from the original purchase?+
Yes. Later improvements can have different costs and placed-in-service dates. Keep their invoices and project records separate so the study and your CPA can reconcile them without duplicating acquired basis.
AUTHORITATIVE SOURCES
Primary tax references.
Tax rules and procedures can change. These links are general references, not approval of a taxpayer’s position. Your CPA should confirm the law that applies to your acquisition date, placed-in-service date and return.
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