Category
Documentation, property strategy math, and operator discipline.
Depreciation
Cost Segregation Payback Calculator (Sensitivity)
Estimate first-year accelerated depreciation tax savings, subtract fees, and see how the result changes under different tax rates and bonus depreciation assumptions.
On This Page
3 planning notes, 3 FAQs, and source links for follow-up.
Workflow
Start with sample inputs, review the live output, then save the assumptions you plan to act on.
Why This Tool Exists
Cost segregation is not a magic trick. It is an acceleration strategy with execution costs: study fees, documentation standards, and recapture awareness.
This calculator helps you estimate the first-year acceleration signal, then stress test the result under different assumptions so you do not talk yourself into a fantasy.
Execution note: Run the tool, then write down your assumptions and keep the receipts and logs as you go. The strategy that wins on paper only matters if your process holds up in the real world.
Cost Seg Payback (First-Year Signal)
Estimate first-year accelerated depreciation tax savings and stress test the assumptions.
Depreciable basis (est.)
$0
First-year acceleration (est.)
$0
Net first-year benefit (after fee)
$0
| Scenario | Tax rate | Bonus | Est. tax savings | Net after fee |
|---|
This is a first-year acceleration view. Passive limits, use-ability, and recapture can matter. Treat this as a go/no-go signal, not a full optimization.
What This Tool Is (And Is Not)
This is a planning model, not tax advice. It estimates a directional first-year benefit based on inputs you control.
The value comes from clarity: if small assumption changes flip the result, you should slow down and get a proper study and CPA review.
Inputs That Actually Move The Outcome
Your marginal tax rate (federal plus state) is the lever that converts depreciation into dollars.
The bonus depreciation percentage and the portion of basis reclassified into shorter-lived property are the acceleration engine.
Fees and process quality are the friction. If the packet is sloppy, you pay for a study and still cannot use it cleanly.
Execution Notes (Avoid The Obvious Mistakes)
Do not model a benefit you cannot actually use (limitations and passive rules matter).
Keep the study, allocation, and support in one folder and get advisor sign-off before filing.
If you are using this for STR decisions, pair the model with documentation and hours logs. Execution decides the outcome.
Documentation Checklist (Keep It Defensible)
- Create a one-page objective memo before you execute (what outcome you are trying to buy).
- Store your assumptions and calculations in a dated PDF (no year-end reconstructions).
- Keep evidence in the same folder structure every month (receipts, logs, approvals).
- Ask your CPA what would make this easy to sign off on, then build that packet.
Primary Sources To Verify Before You Act
Use primary guidance and your own records before you treat any page like a final answer. These are the source layers that should drive the decision.
- IRS Publication 946 and depreciation guidance
- IRS passive activity rules (Publication 925)
- Current IRS forms, instructions, and publications for the relevant tax year
- Your actual account statements, payroll reports, entity records, and advisor memos
Frequently Asked Questions
Because this is a planning tool. Your real marginal rate depends on your full return. Using a conservative effective rate keeps the model honest.
No. A study creates the documentation and the allocations. This tool helps you decide whether the study is even worth pricing out.
No. Recapture and holding period can matter. Treat this as a first-year acceleration view, not a lifetime optimization model.
Use The Tool, Then Build The Full Plan Live
Before You File runs live on Zoom from Friday, April 17, 2026 through Sunday, April 19, 2026, from 10 AM to 4 PM Eastern each day. Preston walks through how to read your 2025 return, choose the right tax and wealth moves, and leave with a dated 12-month 2026 plan.
Get Your Seat Before You FileEducational content only. Results vary based on your facts. Always consult a qualified tax professional before making decisions.