See your real estate phantom loss — and how much it saves you every year
Property Details
$
Typically 70–85% of purchase price. Land is NOT depreciable.
$
$
$
Federal + state combined. Average investor: 25–35%.
%
Include Cost Segregation (Year 1 bonus)
Accelerates 20–30% of building value into year one deduction.
Your Depreciation Breakdown
Annual Depreciation
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27.5 year schedule
Annual Tax Saved
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without cost seg
Taxable Income Without Depr.
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what you'd owe on
Taxable Income With Depr.
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phantom loss at work
10-Year Tax Savings Comparison
Strategy
Year 1 Savings
10-Year Total
Standard Depreciation Only
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With Cost Segregation
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Total Savings (10 years)
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Cost Segregation Bonus: By accelerating short-life components (carpet, lighting, appliances) into year one, you capture a larger deduction immediately — freeing up cash to reinvest in your next deal sooner.
Not financial or tax advice. Consult a CPA before making any tax decisions. Numbers are estimates based on IRS 27.5-year residential depreciation schedule.