Skip to content

Sample study · fictional builder

Cedar Creek Rentals

32 build-to-rent homes, $11.2M including land, Texas, ready to rent June 2026

Estimated value after our fee

$280,424

Likely range $156,545 to $400,830. Middle case in today's dollars (6% a year), after our fixed fee.

First-year tax value $295,125 on your 2026 return

Extra first-year depreciation
$520,108
The deduction cost seg firms quote. A deduction, not cash saved.
Tax value now
$285,919 · $280,424 after our fee
What the extra depreciation is worth in tax, in today's dollars, before and after our fee.

Other studies often show 20–30% of a rental moved to faster lives; most of the difference is kitchen cabinets, counters, sinks and fans placed in 5-year property, which a Tax Court case (AmeriSouth, 2012) and the IRS audit guide keep in the building. Our study takes every position with solid support and lists the rest for your CPA.

There is no published range for this exact type, so we used the closest one and widened the range.

How we got it

Faster depreciation (cost segregation)$228,528
Small-business exemption from inventory cost rules (no study needed)A change your CPA can make on the return; there is no study and no fee. Rough estimate.$51,896
Estimated value after our fee$280,424
How we got this
From your answers and industry benchmarks for this property type (IRS cost segregation audit guide classes). Tax rates are standard placeholders until your CPA sets them. The paid study runs on your actual job costs.
  • Estimated value after our feeNet of fees = value - fee · Estimate$280,424
  • Low end of the rangeNet of fees = value - fee · Assumption$156,545
  • High end of the rangeNet of fees = value - fee · Estimate$400,830
  • Our fixed fees, already subtractedStudy or appeal fee, paid in the base year (t = 0) · Assumption$5,495
  • Cash tax saved in 2026Roll-up total = sum of its lines (by year, project, strategy, builder and portfolio) · Estimate$295,125
  • Extra first-year deductionDeductions by tax year: sum of class schedules (179 -> bonus -> MACRS via depreciateYear) · Verified source$520,108

Building cost

$9,600,000

Without land, which is never depreciated

Moved to faster lives

$1,804,800 (19%)

5, 7 and 15-year property

Extra first-year depreciation

$520,108

The deduction firms quote, on your 2026 return

Estimated value after our fee

$280,424

After our fee, in today's dollars

Where the building cost goes

  • 5-year 11%
  • 15-year 8%
  • Structure 81%

What is worth doing

Studies that fit

Each one, after its own fixed fee. We say so when one is not worth it.

  • Faster depreciation (cost segregation)

    Good fit

    Cedar Creek, 32 rental homes

    Value after its fee
    $228,528
    Our fixed fee
    $5,495

    Worth it: conservative net benefit $94,367 after the $5,495 fee and exit tax.

See every line

Value by project

ProjectValue after fees
Cedar Creek, 32 rental homes$280,424
Estimated value after our fee$280,424

Cash tax saved by year

Middle case, not discounted. Faster depreciation saves tax early and a little less later, when the deduction would have come anyway.

YearCash tax saved
2026$295,125
2027$90,589
2028$49,704
2029$24,523
2030$22,737
2031$3,706
2032−$14,466
2033−$14,466
2034−$14,443
2035−$14,472
2036+−$428,539

Deadlines

  • No deadlines for this property.

What would change the number

  • These are benchmark estimates from your answers. The paid study runs on your actual job costs, so the numbers can move.
  • Ask your CPA for your tax rates. Until then we use a standard rate, and your CPA uses your actual one.

What your CPA will receive

Summary numbers are free; the detail unlocks after payment.

CPA packet

Locked · preview

Summary for your CPA, every study, review status and sign-offs, all import files in one zip

Studies
1
Estimated value after our fee
$280,424
Projects
1
  • Packet summary for your CPA (every study, review stage, sign-offs)
  • Lacerte/ProConnect Fixed Asset Import file per property
  • Generic asset schedule for any preparer software
  • Bonus elections by class
  • Method changes (481(a) lines)
  • Credits and deductions
  • Review log
  • README with the column map
1 rows in the full document. The detail unlocks after payment.

Asset schedules and Lacerte/ProConnect import files

Locked · preview

Every asset with its recovery class, method, basis and bonus, ready for the Fixed Asset Import wizard

Properties
1
Depreciable basis
$9,600,000
Extra first-year deduction
$520,108
Asset rows
9
  • Asset schedule per property (every component, recovery class, method, convention, basis, bonus)
  • Lacerte/ProConnect Fixed Asset Import CSV
  • Generic CSV for UltraTax, CCH, Drake and others
  • Bonus elections by class
9 rows in the full document. The detail unlocks after payment.

Form 3115 and 4562 data sheets

Locked · preview

Line-by-line data for the depreciation form and any method change (481(a) adjustment)

Properties on Form 4562
1
Total basis
$9,600,000
Method changes (Form 3115)
0
  • Form 4562 data sheet: basis by recovery class, first-year deduction
  • Form 3115 data sheet: change number, year of change, 481(a) adjustment, who files
3 rows in the full document. The detail unlocks after payment.

Audit binder

Locked · preview

Source documents index, method and quality checklist, review log

Studies
1
Binder items
22
  • Studies and their review stage
  • Source documents index (provided / missing)
  • Quality elements checklist (IRS cost segregation audit guide)
  • Review log: who approved, reviewed and released, and when
22 rows in the full document. The detail unlocks after payment.

Cost segregation study report (PDF)

Locked · preview

The full study report: methodology, legal analysis, asset schedule by class, depreciation with and without, 481(a), recapture, evidence and the IRS audit guide quality checklist

Projects
1
Depreciable basis
$9,600,000
Extra first-year deduction
$520,108
  • Cover with preparer and reviewer sign-off
  • Executive summary: reclassification by class, first-year and lifetime deduction
  • Property description
  • Methodology (IRS audit guide approach, data sources, indirect costs)
  • Legal analysis: HCA and Whiteco tests, Rev. Proc. 87-56 classes, authorities
  • Cost basis, land allocation and reconciliation
  • Asset schedule by class with source references
  • Depreciation with and without the study
  • Section 481(a) and Form 3115 data sheet (look-back only)
  • Partial dispositions (if any)
  • Recapture at exit
  • Evidence appendix (photos, scans, binder)
  • Assumptions and limiting conditions
  • Quality-element checklist mapped to pages
  • Reviewer certification
15 rows in the full document. The detail unlocks after payment.

Combined CPA summary (PDF)

Locked · preview

Every study, review status, tie-out to the forms, deadlines, open questions and sign-offs

Studies
1
  • Engagement summary: every study, review stage, status
  • Tie-out to Forms 4562, 3115, 8908, 7205, 6765
  • Deadlines
  • Open questions
  • Reliance statement
  • Reviewer sign-offs
6 rows in the full document. The detail unlocks after payment.

Research tool for CPA review; not tax advice. Planning estimates at the builder's rates; a CPA confirms every item before filing. Estimates are ranges, not promises; no study is guaranteed or IRS-approved. Fees are fixed by scope and never depend on the savings. Sample study for a fictional builder. · as of Oct 26, 2026.