Tax Strategy Tools

Each calculator uses IRS depreciation schedules, tax bracket assumptions, and property classification rules to generate estimates. The tools apply simplified versions of the same formulas tax professionals use when modeling depreciation strategies.

Calculators accept property-specific inputs like purchase price, property type, tax bracket, and ownership details. The tools then apply accelerated depreciation percentages, bonus depreciation phase-down rules, and recapture tax rates to generate estimates. Results show potential first-year deductions, multi-year savings comparisons, and tax liability changes.

Checkers and quizzes use eligibility criteria based on IRS rules, property characteristics, and investor profiles. They guide users through decision trees to determine whether cost segregation or other strategies are likely to produce meaningful benefits given their specific situation.

Tax strategy tools provide quick estimates of depreciation benefits, tax savings, recapture liabilities, and strategy comparisons. These are planning-level figures designed to inform go/no-go decisions, not final tax positions.

The Cost Segregation Calculator estimates total tax savings over multiple years by comparing traditional straight-line depreciation against accelerated schedules. The Bonus Depreciation Calculator shows how much additional deduction you can claim in year one under current law. Recapture calculators estimate the tax owed when properties are sold after taking accelerated depreciation.

Eligibility checkers assess whether your property meets basic qualification criteria for cost segregation based on property type, value, ownership structure, and depreciation status. Comparison tools model side-by-side scenarios showing cash flow differences between depreciation strategies.

Start with the Property Eligibility Checker or Cost Segregation Quiz if you are new to cost segregation and unsure whether it applies to your situation. These tools guide you through qualification questions and help determine if further analysis makes sense.

Use the Cost Segregation Calculator when you want to estimate potential savings on a specific property. This tool is most useful when you have property value, type, and basic cost information available. Follow up with the Bonus Depreciation Calculator if you want to model the impact of immediate expensing under current law.

Use recapture calculators when planning property sales or dispositions. These tools help you understand the tax consequences of selling properties where you have claimed accelerated depreciation. The Partial Disposition Calculator is designed for scenarios where you are replacing building components or writing off retired assets.

An investor purchases a $3,000,000 multifamily property in 2026. Using the Cost Segregation Calculator, the investor enters the purchase price, selects "Multifamily" as the property type, and inputs a 37% federal tax bracket.

The calculator estimates that approximately 25% of the building basis ($750,000) can be reclassified into shorter-life property. Under traditional depreciation, the annual deduction would be approximately $109,000. With cost segregation and 60% bonus depreciation, the first-year deduction increases to approximately $460,000.

The investor then uses the Bonus Depreciation Calculator to model what happens if bonus depreciation phases down to 40% in 2027 or 20% in 2028. This comparison shows the value of acting in 2026 versus delaying. Finally, the investor runs the Depreciation Recapture Calculator to understand the tax consequences if the property is sold after five years with accelerated depreciation.

Tax strategy tools are most valuable during property acquisition due diligence, when investors are evaluating cash flow projections and need to model tax impacts. Calculators help determine whether cost segregation fees are justified by the savings produced.

Tools are also useful when planning year-end tax strategy, modeling property sales, or comparing multiple investment opportunities. Investors use these calculators to prioritize which properties in a portfolio should receive cost segregation studies first.

Eligibility checkers and quizzes work best as initial screening tools before engaging tax advisors or cost segregation firms. They help investors avoid wasting time on properties that do not meet basic qualification criteria.

Tax strategy tools provide estimates based on simplified assumptions and typical reclassification percentages. Actual results depend on detailed engineering analysis, construction costs, and property-specific attributes that calculators cannot fully capture.

Calculators use average or typical percentages for asset reclassification, which may not match your specific property. They do not account for state tax rules, passive activity loss limitations, alternative minimum tax, or entity-specific restrictions that can materially affect actual savings.

Tools cannot replace professional cost segregation studies, tax advice, or CPA guidance. They are designed to inform preliminary planning decisions, not produce tax filing positions. Always consult qualified tax advisors before making final depreciation elections or tax strategy decisions.

• Cost Segregation Overview
• Bonus Depreciation Guide
• Depreciation Recapture Explained
• Cost Segregation ROI
• Eligibility and Rules
• Cost Segregation Study Process