Do land improvements qualify for Bonus Depreciation?

Yes! 15-year land improvements (such as sidewalks, paving, parking lots, and exterior landscaping) have a recovery period under 20 years and qualify for Bonus Depreciation.

Updated: August 2026 • Verified v1.2

Commercial Real Estate Cost Segregation & Bonus Depreciation Calculator

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Year1 = Bonus(5Yr + 15Yr) + MACRS(Residuals) + StraightLine(Building); Savings = Year1 * TaxBracket

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Understanding Your Results

Breaks down property basis into land, 5-year personal property, 15-year land improvements, and remaining building, computing Year 1 tax savings.

Practical Guidance & Next Steps

By segregating 15-30% of a building's purchase price into 5-year and 15-year assets, investors qualify for immediate first-year Bonus Depreciation (60% in 2024, 40% in 2025).

What is this?

A real estate tax calculator that models the accelerated depreciation benefits of a Cost Segregation study.

How does it work?

1. Enter building acquisition purchase price and land value percentage. 2. Choose property type (commercial 39-year vs residential 27.5-year) and bonus depreciation rate. 3. Compare standard straight-line depreciation against accelerated Cost Segregation write-offs.

Why use it?

Enables property syndicators and high-net-worth investors to evaluate return on investment for commissioning a formal cost segregation study.

Technical Scope & Calculation Limitations

Estimates based on typical engineering cost segregation benchmark distributions. Actual tax filings require a formal engineering-based study.

Frequently Asked Questions

A cost segregation study is an IRS-approved engineering analysis that identifies and reclassifies personal property assets to shorten depreciation recovery periods.

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