Cost Segregation Residential Rental 2027 Calculator

Calculate cost segregation tax savings 2027 — reclassify 20-35% of rental cost basis to 5/15-year depreciation instead of 27.5-year. Front-loads deductions.

Cost Seg Mechanics

Engineering study identifies building components depreciable on 5/15-year schedule (carpet, fixtures, parking) vs 27.5 default. Accelerates deductions into early years.

Bonus Depreciation 2027

60% bonus on 5/15-year assets in 2026, dropping to 40% in 2027. Phases out completely 2027. Time studies to maximize.

Best Properties

Multifamily $500k+. Office. Retail. Hotels. NOT good for cheap single-family (study cost too high vs benefit).

Audit Risk

Properly done = audit-defensible. IRS challenges only sloppy DIY. Use credentialed engineer (KBKG, Mansur, Bedford CSP).

Source: irs.gov Cost Segregation Audit Technique Guide, KBKG cost seg studies. Last updated: May 2026.

Frequently Asked Questions

Recapture at sale?

Yes — accelerated depreciation recaptured at 25% (unrecaptured Section 1250). Plan exit strategy.

DIY possible?

Below $500k basis maybe. Above, hire professional. IRS scrutiny higher on DIY.

Cost seg + 1031 exchange?

Yes — defer recapture via 1031 to like-kind property. Hold + die = step-up basis erases everything.