Depreciation calculator for CRE planning conversations.

Review a PropertyPrep Checklist

$194,482

$2,000,000

40%

Cash-flow bridge

Show how the timing value moves through the model.

The calculator is strongest when it helps owners see that depreciation is not just a schedule. It is a timing decision that can affect usable cash flow, reinvestment, and CPA review.

Depreciable basis

$2,000,000

Short-life allocation

40%

Year-one lift

$194,482

Reinvested horizon

$419,872

Start with the property facts.

Short-life allocation

40% of depreciable basis

Typical range for office building: 20-40%. Keep total allocation at or below 100%; a formal study still needs engineering records and source documents.

Year-one additional deduction

$779,487

Year-one cash-flow lift

$194,482

Tax cash flow over 10 years

$194,482

If reinvested through horizon

$419,872

Estimated annual tax cash-flow lift.

Combined rate: 24.9%

Year 1$194,482
Year 2$0
Year 3$0
Year 4$0
Year 5$0
Year 6$0
Year 7$0
Year 8$0
Year 9$0
Year 10$0

Use this as a conversation starter.

This estimate depends on property records, placed-in-service facts, entity structure, and current tax law. A formal study should document component classifications and support the CPA review file; the calculator is meant to show whether the timing value is worth a deeper benefit analysis.

Discuss the Scenario

What does the CRE depreciation calculator estimate?

The calculator estimates how cost segregation assumptions may move depreciation forward, create year-one tax cash-flow lift, and show potential reinvestment value over a planning horizon.

Is the calculator a replacement for a cost segregation study?

No. The calculator is a planning conversation tool. A formal cost segregation study still needs property records, placed-in-service facts, engineering review, and CPA support.

Why does the calculator default bonus depreciation to 100%?

IRS guidance reviewed July 3, 2026, generally restores 100% bonus depreciation for qualified property acquired after Jan. 19, 2025. The percentage should still be reviewed with the CPA for property timing, elections, state treatment, and taxpayer fit.

When should an owner use the calculator?

Use it before acquisition, renovation, return filing, or look-back review when the owner needs to decide whether a deeper benefit analysis is worth pursuing.