---
title: "Cost Segregation Calculator"
updated: "2026-05-01T08:00:00Z"
canonical: "https://www.havenstoneadvisory.com/resources/calculators/cost-segregation"
---

# Cost Segregation Calculator

Estimate accelerated depreciation and potential federal tax impact from a cost segregation study.

## Cost Segregation: The Basics

Cost segregation can accelerate depreciation by reclassifying parts of a building into shorter-life asset classes. That can increase deductions earlier, especially when bonus depreciation is available.

- **What it does**: Splits depreciable basis into short-life property (often 5/7/15-year) + remaining building life (27.5/39-year).
- **When it tends to pencil**: Higher basis, meaningful improvements, higher tax rate, and/or bonus depreciation availability.
- **What matters for accuracy**: Land value, placed-in-service date, and renovation/improvement details are usually the biggest drivers.

## FAQ

- **What is a cost segregation study?** A study that identifies building components that can be reclassified into shorter IRS recovery periods instead of depreciating everything as 27.5- or 39-year building.
- **Does cost segregation change total depreciation, or just timing?** Primarily a timing shift: you accelerate depreciation into earlier years, improving cash flow.
- **What properties are eligible?** Commonly used for residential rental (27.5-year) and commercial real estate (39-year).
- **How does bonus depreciation interact?** Bonus depreciation applies to eligible short-life components and can significantly increase year-one deductions.
- **Can I do cost segregation after I've owned the property for a while?** Often yes, via a "lookback" study and catch-up adjustment.
- **Will cost segregation increase audit risk?** A well-documented study prepared with appropriate methodology is designed to hold up under scrutiny.

Use the interactive calculator at: https://www.havenstoneadvisory.com/resources/calculators/cost-segregation