How accurate is this calculator?

It gives a range, not a number. The real share of a rental that qualifies for faster depreciation depends on what's actually in the home, which only an item-by-item study can measure. We use 15% to 35% of the depreciable basis until we can publish averages from our own completed studies.

Why does the contract date matter?

Under the 2025 tax law (P.L. 119-21 §70301, amending IRC §168(k); IRS Notice 2026-11 is the interim guidance), property acquired under a binding contract signed after January 19, 2025 and placed in service after that date gets 100% bonus depreciation. Property under contract on or before that date follows the older phase-down: 40% if placed in service in 2025, 20% in 2026, and none from 2027.

Is my rental 27.5-year or 39-year property?

Long-term rentals are usually 27.5-year residential property. Short-term rentals with very short average stays may be treated as 39-year nonresidential property. It depends on how the property is operated, so the calculator can show both. Your CPA makes the final call.

Is this the tax I'll save?

No. It's the value of the extra deduction at your bracket, and only if you can use the loss (material participation and passive-activity rules apply). Depreciation can also be recaptured as income when you sell.

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Cost segregation calculator for short-term rentals

A cost segregation study usually moves 15% to 35% of a rental's depreciable basis into 5- and 15-year property, which can be deducted in year one when 100% bonus depreciation applies (property acquired and placed in service after January 19, 2025). Older contracts get a smaller bonus. Enter your numbers to see the range for your rental. Every formula we use is published below.

Acquired and placed in service after Jan 19, 2025: 100% bonus depreciation · depreciable basis $631,520

27.5-year building

$92,575–$216,009

extra first-year depreciation from a study

Reclassified to short-life: $94,728–$221,032
First-year depreciation without a study: $14,353
Deduction value at your bracket: $32,401–$75,603

39-year building

$93,210–$217,490

extra first-year depreciation from a study

Reclassified to short-life: $94,728–$221,032
First-year depreciation without a study: $10,121
Deduction value at your bracket: $32,623–$76,121

Estimate only, method v1.1 · ruleset 2026.5. Assumes you don't elect out of bonus depreciation. Not tax advice; whether you can use the deduction and recapture on sale are confirmed with your CPA.

How the estimate is calculated

Method v1.1 · ruleset 2026.5 · last reviewed October 2026

Depreciable basis = (purchase price + capitalized closing costs) × (1 − land share). Land is never depreciable.
Reclassified to short-life property = depreciable basis × 15% (low) and × 35% (high), plus any furniture bought separately.
Bonus depreciation rate, by binding-contract (acquisition) date and placed-in-service year (IRC §168(k); P.L. 119-21 §70301; IRS Notice 2026-11):
- Acquired and placed in service after January 19, 2025: 100%.
- Acquired after September 27, 2017 (and on or before January 19, 2025): 100% if placed in service from September 28, 2017 through 2022; 80% in 2023; 60% in 2024; 40% in 2025; 20% in 2026; 0% from 2027.
- Acquired on or before September 27, 2017 (PATH Act): 50% if placed in service in 2017, 40% in 2018, 30% in 2019.
First-year depreciation with a study = short-life basis × bonus rate, plus 20% of any remainder (5-year MACRS, half-year convention, IRS Pub. 946 Table A-1), or 5% if placed in service October–December (mid-quarter convention, required when more than 40% of the year's personal property is placed in service in the fourth quarter; Pub. 946 Table A-5), plus the building's first-year depreciation.
Building first-year depreciation = remaining building basis × (12 − month placed in service + 0.5) ÷ 12 ÷ 27.5 or 39 (mid-month convention, Pub. 946).
Without a study, the whole depreciable basis uses the building formula in step 5. Furniture bought separately is 5-year property either way, so it gets the same bonus rate plus 20% (or 5%) of any remainder, as in step 4.
Extra first-year depreciation = step 4 − step 6. Deduction value = that × your federal bracket.

All math runs in whole cents with deterministic rounding, so the same inputs always produce the same result.

Worked example

A rental bought for $780,000 with $9,400 of capitalized closing costs, land at 20%, contract signed March 14, 2026, available to rent May 2, 2026, treated as 39-year property, owner in the 35% bracket:

Depreciable basis	$631,520
Reclassified to short-life (15%–35%)	$94,728–$221,032
First-year depreciation with a study	$103,330–$227,610
First-year depreciation without a study	$10,121
Extra first-year depreciation	$93,210–$217,490
Deduction value at 35%	$32,623–$76,121

What this calculator doesn't do

It doesn't look at your property. A real study inventories each item and ties every dollar to what you paid.
It doesn't decide whether you can use the loss, or model recapture when you sell.
It treats all short-life property as 5-year for simplicity; land improvements (15-year) get the same bonus treatment.
It assumes you don't elect out of bonus depreciation.
For a rental placed in service in an earlier year, it shows the first-year difference. The amount you'd actually claim is a Form 3115 catch-up (§481(a) adjustment): cumulative depreciation allowable minus what you took. Your CPA computes it.
It covers federal tax only. Some states, like California, don't follow federal bonus depreciation.

See your potential savings on your own rental →

Questions

How accurate is this calculator?: It gives a range, not a number. The real share of a rental that qualifies for faster depreciation depends on what's actually in the home, which only an item-by-item study can measure. We use 15% to 35% of the depreciable basis until we can publish averages from our own completed studies.
Why does the contract date matter?: Under the 2025 tax law (P.L. 119-21 §70301, amending IRC §168(k); IRS Notice 2026-11 is the interim guidance), property acquired under a binding contract signed after January 19, 2025 and placed in service after that date gets 100% bonus depreciation. Property under contract on or before that date follows the older phase-down: 40% if placed in service in 2025, 20% in 2026, and none from 2027.
Is my rental 27.5-year or 39-year property?: Long-term rentals are usually 27.5-year residential property. Short-term rentals with very short average stays may be treated as 39-year nonresidential property. It depends on how the property is operated, so the calculator can show both. Your CPA makes the final call.
Is this the tax I'll save?: No. It's the value of the extra deduction at your bracket, and only if you can use the loss (material participation and passive-activity rules apply). Depreciation can also be recaptured as income when you sell.