Estimate Your Potential Tax Savings
Take the guesswork out of your potential tax savings.
Use our free cost segregation calculator for fast, accurate, and easy-to-interpret tax savings estimates.
Cost Segregation Calculator
Add your property details below to calculate potential accelerated depreciation from a Seneca cost segregation study
Calculation Results
Current Tax Filing Year Depreciation
Optimistic
Estimated
No Study
Depreciation Over First 15 Years
Reallocation Results
Optimistic Reallocation
Personal Property 0%
Site Improvements 0%
Real Property 0%
Estimated Reallocation
Personal Property 0%
Site Improvements 0%
Real Property 0%
Interpreting the Calculator's Output
Interpreting the results of the cost segregation calculator means understanding how the tool breaks down the depreciation and how it impacts your tax benefits.
Here’s how you can make sense of the output:
- Depreciation Breakdown: Consider how the calculator breaks down your property into different components and assigns corresponding depreciation schedules. If there are more categories with shorter depreciation schedules, you’ll have higher early tax savings.
- Focus First on the Immediate Tax Savings: You’ll see the expected immediate tax savings from accelerated depreciation. Focus more on these early tax benefits, as they are the main benefit of cost segregation.
- Consider Future Benefits: You’ll also see how the expected depreciation progresses over the years. The insights into the benefits of this long-term depreciation can be helpful for ongoing tax planning.
- Review the Total Depreciation: Consider the total depreciation to understand the long-term benefits of cost segregation.
- Compare Results with Standard Depreciation: Check how accelerated depreciation compares with standard depreciation to help you understand the benefits of cost segregation.
- Make Real-Time Adjustments: You can explore the calculator’s flexibility to simulate different scenarios and assumptions to better understand the potential impact of different factors on your overall tax strategy.
Taking Action with Your Cost Segregation Estimate
Knowing how to calculate cost segregation using an online calculator won’t be enough. At best, you’ll only have an accurate estimate of your potential income tax savings.
You can’t submit the calculator’s findings to the IRS.
You’ll need to work with experts to obtain a detailed cost segregation report to present to the IRS and to your CPA to claim the accelerated depreciation.
This is why Seneca Cost Segregation prepares a no-cost-to-you estimate and proposal as part of the online calculator functionality.
Once submitted, using online pictures of the property, pictures you submit, county tax records, and property details, we turn around a proposal that shows a more accurate picture of savings available to you.
Partner with Seneca for Maximum Tax Savings
Estimating your savings using a cost segregation calculator is a good step to actualizing your tax benefits.
Here’s why you should partner with us at Seneca Cost Segregation to maximize your real estate property tax savings:
- Proven Success with a Simple Three-Step Process: We streamline the entire process through three easy steps. First, we provide you with a free potential tax savings and ROI estimate. Then, we schedule a virtual or in-person site visit to prepare the study. Finally, we deliver a detailed personalized report and fixed asset schedule that you and your CPA can use to unlock tax savings.
- Years of Experience: Our core team has over 12 years of active experience in cost segregation, reclassifying building components for faster depreciation deductions. We thoroughly identify and classify components that are eligible for accelerated depreciation deductions. Our engineers have performed over 10,200 studies.
- Serving Diverse Property Types: We can perform cost segregation on different types of residential and commercial property, including industrial spaces, retail buildings, owner-occupied businesses, and residential rentals.
- Legality and Compliance: Our cost segregation studies, based on the IRS Cost Segregation Audit Technique Guide (CSATG), are legal and comply fully with the IRS.
- Audit Defense Guarantee: Although none of our past clients have been audited by the IRS after a cost segregation study, we back our service with a money-back guarantee for your peace of mind. If you get audited, we’ll defend the study on your behalf and, if eligible, refund the cost of the study.
Lower your tax bill with a cost segregation study — get started with Seneca Cost Segregation today.
Frequently Asked Questions (FAQs)
Here are some critical questions real estate investors and business owners usually have about cost segregation:
What Is Cost Segregation?
Cost segregation is an IRS-approved tax planning strategy that lets real estate investors and business owners decrease their tax burden by accelerating depreciation deductions.
It’s an engineering analysis that breaks down a property into various eligible components, such as fencing, fixtures, and roofing and assigns depreciation over 5, 7, or 15 years instead of the regular 27.5 or 39 years.
Is Cost Segregation Worth It?
Cost segregation is totally worth it since it helps you save on taxes by accelerating depreciation on various components of your real estate property.
Besides tax savings, you also enjoy increased cash flows as you can now pocket more of your income, which you can even invest in other projects.
How Accurate Is the Cost Segregation Calculator?
The calculator uses pre-built reclass percentages based on years of data, studies, 3rd party databases, and models we have built over time. That said, for the most accurate estimate, Get a Free Estimate and we will look at your property specifically.
Do I Need to Provide Detailed Property Info to Get Estimates?
Our cost segregation calculator requires high-level information to provide you with an accurate estimate of your potential tax savings.
However, we’ll ask for even more detailed information if you provide details for a no-cost savings estimate, provided by our cost segregation firm.
Can I Use the Calculator for Any Type of Property?
You can use the Seneca Cost Segregation Calculator for nearly any type of real estate property.
You can try it with retail buildings, residential rentals, office spaces, industrial sites, and special-use buildings like restaurants or hotels. If you have a property that falls under “Other,” we strongly recommend asking for a free estimate that our Engineering team will prepare.
Is the Cost Segregation Study Required for Tax Filings?
Typically, you don’t need a cost segregation study for your ordinary property owner’s tax filings.
However, once you have a study conducted and establish that you are eligible for accelerated depreciation tax benefits, you will need to submit a detailed report to the IRS to implement them.
To maximize your tax savings, it is important to work with a leading cost segregation firm, such as Seneca Cost Segregation, to get it right the first time.
Schedule your free cost segregation review to see if your property qualifies for cost segregation and see how much you can save.
