Tax Savings Calculator

Estimate how much depreciation can save you — standard & cost segregation scenarios

Property Details

$

Purchase price or current FMV

%

Typically 15-25% — check your tax assessment

Depreciable building value

$200,000

Income & Filing

$

Pre-tax income from wages, business, etc.

$

Net rental income from other properties

Total taxable income

$150,000

Marginal rate: 22%

Your Depreciation Savings

Without Depreciation

$22,828

Federal tax owed

With Depreciation

$21,228

Federal tax owed

You Save

$1,600

Per year from depreciation

Annual depreciation deduction

$7,273 / year

$200,000 / 27.5 years

Taxable income after depreciation

$142,727

Effective rate: 14.9% (was 15.2%)

Cost Segregation Bonus

A cost segregation study reclassifies portions of your building into shorter depreciation lives (5, 7, and 15 years). Combined with the 2026 bonus depreciation rate of 40%, this front-loads your deductions into the first year.

Standard first-year depreciation

$7,273

With cost seg: first-year depreciation

$35,963

494% of standard depreciation

First-Year Tax Savings with Cost Seg

$7,912

vs. $1,600 with standard depreciation alone

Cost Segregation Deep Dive Guide

Learn when a cost seg study makes financial sense, how to find a qualified engineer, what it costs, and how to model the savings against your specific tax situation.

This calculator provides estimates based on 2025/2026 federal tax brackets and standard depreciation rules. It does not account for state taxes, AMT, passive activity loss limitations, or individual tax situations. Consult a qualified CPA or tax advisor before making investment decisions based on tax projections.

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