Worked Examples
4 articles on worked examples for real estate investors.
Cost Segregation on Commercial Property: A $2 Million Office Building Example
A worked example of a cost segregation study on a commercial building, with the numbers, the 39-year baseline, 100% bonus depreciation, recapture at sale, and the limits that decide whether you can use the deduction.
15-Year Land Improvements in a Cost Segregation Study: A $1.5 Million Retail Example
Parking lots, sidewalks, landscaping and site lighting can be 15-year property. A worked example of how land improvements change the first-year deduction, with the limits to know.
Cost Segregation on a Short-Term Rental: A $600,000 Vacation Home Example
A worked example of cost segregation on an Airbnb-style rental, with the numbers, the 7-day rule, material participation, and the questions to settle with your CPA before you count on the deduction.
When a Cost Segregation Study Is Not Worth It: A Worked Example
Cost segregation does not fit every owner. A worked example of a case where the extra deduction cannot be used, plus the other situations where you should skip or delay a study.