How much does cost segregation actually save? Four worked numbers

How to read these

Each example assumes 100% bonus depreciation applies to reclassified basis, a 35% combined federal and state marginal rate, and that the owner can use the deduction in the year taken. Change any of those and the numbers change. They are illustrative planning figures, not findings.

A $410,000 single-family rental

Depreciable basis $410,000 on a 27.5-year schedule gives about $14,900 of first-year depreciation.

A study reclassifies roughly $42,000 to 5-year (appliances, cabinetry, flooring, blinds, fixtures) and $38,000 to 15-year (driveway, fencing, patio, landscaping). First-year deduction becomes roughly $92,000. Tax deferred: about $27,000 against a study fee under $2,000.

A $3,100,000 strip center

Without a study: about $66,000 of first-year depreciation on a 39-year schedule.

With a study reclassifying $310,000 to 5-year and $690,000 to 15-year — the site work on a seven-bay center with a 96-space lot is substantial — the first-year deduction is roughly $1,054,000. Tax deferred: about $369,000.

An $18,500,000 apartment community

Without a study: about $605,000 first-year on 27.5 years.

With $2,560,000 reclassified to 5-year across 184 units and $2,210,000 to 15-year site improvements, the first-year deduction is roughly $5,270,000. Tax deferred: about $1,845,000.

An $11,800,000 distribution center

The property type that reclassifies least — and still moves.

$680,000 to 5-year and $1,980,000 to 15-year, driven overwhelmingly by four acres of truck court and heavy site work. First-year deduction roughly $2,890,000 against about $252,000 without a study. Tax deferred: about $1,010,000.

The caveat that matters

Every figure above assumes the deduction is usable this year. For a passive investor without other passive income, the loss suspends and the present value falls sharply. That is the first thing we screen on a feasibility call, and it is the reason we turn some work away.