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A cost segregation study example: see every section before you start

This is what you download: a report your tax preparer can check line by line, the schedule as a spreadsheet, and a link to send them. The example below is the product's own output for an invented rental home.

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  • Nine sections
  • PDF, spreadsheet and share link
$97,597
depreciation in year one, with the study
$13,242
in year one without it
47
components, each with its class, its cost and its source

The figures are the example's: a $475,000 rental home in Austin, TX, in service from January 2026. The property is invented; the figures are computed by the same engine that prepares a study.

The example

Open it. Four pages, the spreadsheet and the share link.

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1. Cover · NoCostSeg

Cost segregation study

Alder Street rental

1428 Alder St, Austin, TX

Prepared for Example owner

Date prepared:

Draft. Prepared by software from what the owner provided. Not reviewed by a tax professional.

The owner's tax preparer decides what is filed. This report is not tax, legal or accounting advice.

2. Summary

Depreciable basis: $380,000

ClassCostShare of basis
5-year$57,00015.00%
7-year$00.00%
15-year$30,4008.00%
27.5-year$292,60077.00%
39-year$00.00%

First tax year: 2026

With the study$97,597
Without the study$13,242
Difference$84,354
Bonus depreciation rate100%

The bonus rate follows the contract and placed-in-service dates and applies to eligible components. These are depreciation deductions before the owner's tax limitations.

5. Asset schedule

Amounts are shown in whole dollars, rounded from cents. Calculations and totals use cents, so displayed rounded amounts can differ slightly when added. The main building's class is listed last to end with its remaining basis.

5-year

Component and IRS rowCostCost sourceReason
Window coveringsWindow Treatments · Pub. 5653, p. 322$11,200Estimate$9,500 to $13,400Window Treatments (IRS Publication 5653, p. 322): blinds, curtains and tint added after construction, all readily removable.
Carpet, bedroomsFloor Coverings – Readily Removable · Pub. 5653, p. 307$6,840Estimate$5,900 to $7,900Floor Coverings – Readily Removable (IRS Publication 5653, p. 307): the guide treats all carpeting and sheet vinyl as not permanently attached.
AppliancesKitchen Appliances · Pub. 5653, p. 311$5,950Entered by the ownerKitchen Appliances (IRS Publication 5653, p. 311): stove, refrigerator, microwave and dishwasher are named in this row.
Carpet, living roomFloor Coverings – Readily Removable · Pub. 5653, p. 307$4,260Entered by the ownerFloor Coverings – Readily Removable (IRS Publication 5653, p. 307): the guide treats all carpeting and sheet vinyl as not permanently attached.
Carpet, stairs and hallwayFloor Coverings – Readily Removable · Pub. 5653, p. 307$2,150Entered by the ownerFloor Coverings – Readily Removable (IRS Publication 5653, p. 307): the guide treats all carpeting and sheet vinyl as not permanently attached.
Carpet, bonus roomFloor Coverings – Readily Removable · Pub. 5653, p. 307$2,260Entered by the ownerFloor Coverings – Readily Removable (IRS Publication 5653, p. 307): the guide treats all carpeting and sheet vinyl as not permanently attached.
Carpet, home officeFloor Coverings – Readily Removable · Pub. 5653, p. 307$1,240Entered by the ownerFloor Coverings – Readily Removable (IRS Publication 5653, p. 307): the guide treats all carpeting and sheet vinyl as not permanently attached.
Sheet vinyl, primary bathroomFloor Coverings – Readily Removable · Pub. 5653, p. 307$760Entered by the ownerFloor Coverings – Readily Removable (IRS Publication 5653, p. 307): the guide treats all carpeting and sheet vinyl as not permanently attached.
Sheet vinyl, hall bathroomFloor Coverings – Readily Removable · Pub. 5653, p. 307$620Entered by the ownerFloor Coverings – Readily Removable (IRS Publication 5653, p. 307): the guide treats all carpeting and sheet vinyl as not permanently attached.
Sheet vinyl, laundry roomFloor Coverings – Readily Removable · Pub. 5653, p. 307$640Entered by the ownerFloor Coverings – Readily Removable (IRS Publication 5653, p. 307): the guide treats all carpeting and sheet vinyl as not permanently attached.
Window tint film, west windowsWindow Treatments · Pub. 5653, p. 322$260Entered by the ownerWindow Treatments (IRS Publication 5653, p. 322): blinds, curtains and tint added after construction, all readily removable.
Range circuit, 240-voltKitchen – Electrical -Dedicated Branch · Pub. 5653, p. 311$1,150Entered by the ownerKitchen – Electrical -Dedicated Branch (IRS Publication 5653, p. 311): wiring and an outlet that serve one kitchen appliance only.
Dishwasher circuitKitchen – Electrical -Dedicated Branch · Pub. 5653, p. 311$520Entered by the ownerKitchen – Electrical -Dedicated Branch (IRS Publication 5653, p. 311): wiring and an outlet that serve one kitchen appliance only.
Refrigerator circuitKitchen – Electrical -Dedicated Branch · Pub. 5653, p. 311$480Entered by the ownerKitchen – Electrical -Dedicated Branch (IRS Publication 5653, p. 311): wiring and an outlet that serve one kitchen appliance only.
Built-in microwave circuitKitchen – Electrical -Dedicated Branch · Pub. 5653, p. 311$460Entered by the ownerKitchen – Electrical -Dedicated Branch (IRS Publication 5653, p. 311): wiring and an outlet that serve one kitchen appliance only.
Dryer circuit, 240-voltElectrical Branch Circuits - Appliances · Pub. 5653, p. 300$980Entered by the ownerElectrical Branch Circuits - Appliances (IRS Publication 5653, p. 300): a connection used directly with one appliance, not an outlet of general use.
Clothes washer outletElectrical Branch Circuits - Appliances · Pub. 5653, p. 300$420Entered by the ownerElectrical Branch Circuits - Appliances (IRS Publication 5653, p. 300): a connection used directly with one appliance, not an outlet of general use.
Garbage disposal circuitElectrical Branch Circuits - Appliances · Pub. 5653, p. 300$390Entered by the ownerElectrical Branch Circuits - Appliances (IRS Publication 5653, p. 300): a connection used directly with one appliance, not an outlet of general use.
Garage refrigerator outletElectrical Branch Circuits - Appliances · Pub. 5653, p. 300$360Entered by the ownerElectrical Branch Circuits - Appliances (IRS Publication 5653, p. 300): a connection used directly with one appliance, not an outlet of general use.
Dishwasher water hook-upKitchen – Plumbing -Dedicated Branch · Pub. 5653, p. 311$610Entered by the ownerKitchen – Plumbing -Dedicated Branch (IRS Publication 5653, p. 311): a water hook-up connected directly to an appliance.
Icemaker water lineKitchen – Plumbing -Dedicated Branch · Pub. 5653, p. 311$340Entered by the ownerKitchen – Plumbing -Dedicated Branch (IRS Publication 5653, p. 311): a water hook-up connected directly to an appliance.
Electrical service, share for appliancesElectrical - Primary and Secondary EDS – Appliances · Pub. 5653, p. 302$2,900Entered by the ownerElectrical - Primary and Secondary EDS – Appliances (IRS Publication 5653, p. 302): the part of the electrical service that feeds the appliances, by their design load.
Track lighting, living roomLight Fixtures – Interior -Accent/Decorative/Special Fixture · Pub. 5653, p. 313$1,240Entered by the ownerLight Fixtures – Interior -Accent/Decorative/Special Fixture (IRS Publication 5653, p. 313): decorative lighting: the room is lit well enough with it switched off.
Accent lighting, kitchen shelvesLight Fixtures – Interior -Accent/Decorative/Special Fixture · Pub. 5653, p. 313$1,060Entered by the ownerLight Fixtures – Interior -Accent/Decorative/Special Fixture (IRS Publication 5653, p. 313): decorative lighting: the room is lit well enough with it switched off.
Landscape accent lightingLight Fixtures - Exterior -Accent/Decorative/Special Fixture · Pub. 5653, p. 313$1,480Entered by the ownerLight Fixtures - Exterior -Accent/Decorative/Special Fixture (IRS Publication 5653, p. 313): lights only the planting and the front of the house, not a walk or the driveway.
Facade uplightsLight Fixtures - Exterior -Accent/Decorative/Special Fixture · Pub. 5653, p. 313$920Entered by the ownerLight Fixtures - Exterior -Accent/Decorative/Special Fixture (IRS Publication 5653, p. 313): lights only the planting and the front of the house, not a walk or the driveway.
Television and internet cablingData Cable and Wiring · Pub. 5653, p. 300$1,740Entered by the ownerData Cable and Wiring (IRS Publication 5653, p. 300): cabling for television and internet equipment, not for a system of the building.
Kitchen fire extinguisherFire Protection Equipment · Pub. 5653, p. 306$90Entered by the ownerFire Protection Equipment (IRS Publication 5653, p. 306): a kitchen fire extinguisher is the row's own example.
Retractable awning, back doorAwnings & Canopies · Pub. 5653, p. 297$2,300Entered by the ownerAwnings & Canopies (IRS Publication 5653, p. 297): a readily removable cover over a door or a window, not part of the building's shell.
Canvas awnings, front windowsAwnings & Canopies · Pub. 5653, p. 297$1,150Entered by the ownerAwnings & Canopies (IRS Publication 5653, p. 297): a readily removable cover over a door or a window, not part of the building's shell.
Strippable wallpaper, dining roomWall Coverings -Nonpermanent · Pub. 5653, p. 321$780Entered by the ownerWall Coverings -Nonpermanent (IRS Publication 5653, p. 321): strippable wallpaper that leaves the wall undamaged.
Built-in speakers and wiringSound Systems · Pub. 5653, p. 319$1,450Entered by the ownerSound Systems (IRS Publication 5653, p. 319): speakers and their wiring, for music only, with no link to an alarm.
5-year subtotal$57,000

15-year

Component and IRS rowCostCost sourceReason
Driveway, concreteRoadways · Pub. 5653, p. 317$9,600Entered by the ownerRoadways (IRS Publication 5653, p. 317): a grade-level driveway, with its curb cut, is an improvement to the land.
LandscapingLandscaping and Shrubbery · Pub. 5653, p. 312$7,250Entered by the ownerLandscaping and Shrubbery (IRS Publication 5653, p. 312): planting against the house, which would be destroyed if the house were replaced.
Fencing, woodFencing, Gates, Retaining Walls, Fountains, and Other Land Improvements · Pub. 5653, p. 305$4,300Entered by the ownerFencing, Gates, Retaining Walls, Fountains, and Other Land Improvements (IRS Publication 5653, p. 305): fences, gates, retaining walls and drainage are named in this row.
Front walk, concreteSidewalks and Curbs · Pub. 5653, p. 318$1,300Entered by the ownerSidewalks and Curbs (IRS Publication 5653, p. 318): a walk of concrete or stone, added to the land.
Garden path, paversSidewalks and Curbs · Pub. 5653, p. 318$520Entered by the ownerSidewalks and Curbs (IRS Publication 5653, p. 318): a walk of concrete or stone, added to the land.
Driveway apron and curb cutRoadways · Pub. 5653, p. 317$700Entered by the ownerRoadways (IRS Publication 5653, p. 317): a grade-level driveway, with its curb cut, is an improvement to the land.
Back patio, concretePatios · Pub. 5653, p. 314$1,650Entered by the ownerPatios (IRS Publication 5653, p. 314): a paved area at ground level beside the house.
Lawn sprinkler systemPlumbing – Lawn/Landscaping Sprinkler System · Pub. 5653, p. 315$1,400Entered by the ownerPlumbing – Lawn/Landscaping Sprinkler System (IRS Publication 5653, p. 315): a lawn sprinkler system is the whole of this row.
Retaining wall, side yardFencing, Gates, Retaining Walls, Fountains, and Other Land Improvements · Pub. 5653, p. 305$980Entered by the ownerFencing, Gates, Retaining Walls, Fountains, and Other Land Improvements (IRS Publication 5653, p. 305): fences, gates, retaining walls and drainage are named in this row.
Side gatesFencing, Gates, Retaining Walls, Fountains, and Other Land Improvements · Pub. 5653, p. 305$380Entered by the ownerFencing, Gates, Retaining Walls, Fountains, and Other Land Improvements (IRS Publication 5653, p. 305): fences, gates, retaining walls and drainage are named in this row.
Yard drainFencing, Gates, Retaining Walls, Fountains, and Other Land Improvements · Pub. 5653, p. 305$540Entered by the ownerFencing, Gates, Retaining Walls, Fountains, and Other Land Improvements (IRS Publication 5653, p. 305): fences, gates, retaining walls and drainage are named in this row.
Post light, front walkLighting - Site · Pub. 5653, p. 313$320Entered by the ownerLighting - Site (IRS Publication 5653, p. 313): a freestanding light for a walk.
Underground electrical to post lightElectrical - Site · Pub. 5653, p. 304$360Entered by the ownerElectrical - Site (IRS Publication 5653, p. 304): electrical service to outdoor lighting, away from the building.
Fine grading, driveway and walksGrading - Excavation & Fine Grading for Depreciable Site Improvements · Pub. 5653, p. 309$300Entered by the ownerGrading - Excavation & Fine Grading for Depreciable Site Improvements (IRS Publication 5653, p. 309): fine grading done for the driveway and the walks themselves.
Freestanding deck, back yardDecks/Gazebos (Freestanding) · Pub. 5653, p. 300$800Entered by the ownerDecks/Gazebos (Freestanding) (IRS Publication 5653, p. 300): a deck that is not attached to the house.
15-year subtotal$30,400

27.5-year

Component and IRS rowCostCost sourceReason
Building (remaining basis)$292,600Remaining basisWhat was paid, less land and the components listed above, stays on the 27.5-year building schedule.
27.5-year subtotal$292,600

Total depreciable basis: $380,000

Continues in the full report

6. Depreciation schedule

Each class column is its deduction with the study, including eligible bonus depreciation in the first year. Without the study, the entire depreciable basis follows the 27.5-year building schedule. Short classes use the half-year convention; real property uses mid-month. Qualified improvement property, when present, uses straight line.

Tax year5-year15-year27.5-yearWith studyWithout studyDifference
2026$57,000$30,400$10,197$97,597$13,242$84,354
2027$0$0$10,640$10,640$13,818-$3,178
2028$0$0$10,640$10,640$13,818-$3,178
2029$0$0$10,640$10,640$13,818-$3,178
2030$0$0$10,640$10,640$13,818-$3,178
2031$0$0$10,640$10,640$13,818-$3,178
2032$0$0$10,640$10,640$13,818-$3,178
2033$0$0$10,640$10,640$13,818-$3,178
2034$0$0$10,640$10,640$13,818-$3,178
2035$0$0$10,640$10,640$13,818-$3,178
2036$0$0$10,640$10,640$13,818-$3,178
2037$0$0$10,640$10,640$13,818-$3,178
2038$0$0$10,640$10,640$13,818-$3,178
2039$0$0$10,640$10,640$13,818-$3,178
2040$0$0$10,640$10,640$13,818-$3,178
2041$0$0$10,640$10,640$13,818-$3,178
2042$0$0$10,640$10,640$13,818-$3,178
2043$0$0$10,640$10,640$13,818-$3,178
2044$0$0$10,640$10,640$13,818-$3,178
2045$0$0$10,640$10,640$13,818-$3,178
2046$0$0$10,640$10,640$13,818-$3,178
2047$0$0$10,640$10,640$13,818-$3,178
2048$0$0$10,640$10,640$13,818-$3,178
2049$0$0$10,640$10,640$13,818-$3,178
2050$0$0$10,640$10,640$13,818-$3,178
2051$0$0$10,640$10,640$13,818-$3,178
2052$0$0$10,640$10,640$13,818-$3,178
2053$0$0$5,763$5,763$7,485-$1,722

Continues in the full report

8. Sources

Publication 5653, Cost Segregation Audit Techniques Guide

Rev. 2-2025

https://www.irs.gov/pub/irs-pdf/p5653.pdf

Date retrieved: 2026-11-11

Publication 946, How To Depreciate Property

For use in preparing 2025 returns

https://www.irs.gov/pub/irs-pdf/p946.pdf

Date retrieved: 2026-11-11

Publication 527, Residential Rental Property

For use in preparing 2025 returns

https://www.irs.gov/pub/irs-pdf/p527.pdf

Date retrieved: 2026-11-11

9. For your tax preparer

  • Confirm the land allocation and the depreciable basis.
  • Estimated costs need support before filing. Review each estimate, its range and assumptions, and obtain the cost evidence needed.
  • Whether the mid-quarter convention applies was not tested. Confirm the applicable convention.
  • Passive-loss limits and state conformity are not worked out. Determine the deductions the owner can actually use.
  • A look-back needs Form 3115. Confirm eligibility, the year of change, prior deductions and the accounting-method adjustment.
  • Any 39-year or qualified improvement items need their conditions confirmed. Review their use, placed-in-service dates and eligibility.
  • Confirm each classification and its IRS row, including entries marked “No IRS row”. The study is prepared by software from what the owner provides; the tax preparer decides what is filed.

Continues in the full report

1 of 4Cover and summary

Drag to turn the page

Alder-Street-rental-depreciation-schedule.csv

Tax year5-year property15-year property27.5-year propertyOf which bonusTotal with studyCumulative with studyTotal without studyCumulative without study
202657000.0030400.0010196.6787400.0097596.6797596.6713242.4213242.42
20270.000.0010640.000.0010640.00108236.6713818.1827060.60
20280.000.0010640.000.0010640.00118876.6713818.1840878.78
20290.000.0010640.000.0010640.00129516.6713818.1854696.96
20300.000.0010640.000.0010640.00140156.6713818.1868515.14
20310.000.0010640.000.0010640.00150796.6713818.1882333.32
20320.000.0010640.000.0010640.00161436.6713818.1896151.50
20330.000.0010640.000.0010640.00172076.6713818.18109969.68
20340.000.0010640.000.0010640.00182716.6713818.18123787.86
20350.000.0010640.000.0010640.00193356.6713818.18137606.04

18 more rows

One row for each tax year and a column for each class, with and without the study, in dollars and cents. Your tax preparer can open it or import it.

nocostseg.com/shared/example-link-opens-nothing

Shared by Example owner, read-only

1. Cover · NoCostSeg

Cost segregation study

Alder Street rental

1428 Alder St, Austin, TX

Prepared for Example owner

Date prepared:

Draft. Prepared by software from what the owner provided. Not reviewed by a tax professional.

The owner's tax preparer decides what is filed. This report is not tax, legal or accounting advice.

2. Summary

Depreciable basis: $380,000

ClassCostShare of basis
5-year$57,00015.00%
7-year$00.00%
15-year$30,4008.00%
27.5-year$292,60077.00%
39-year$00.00%

First tax year: 2026

With the study$97,597
Without the study$13,242
Difference$84,354
Bonus depreciation rate100%

The bonus rate follows the contract and placed-in-service dates and applies to eligible components. These are depreciation deductions before the owner's tax limitations.

Anyone who has the link can read this report for 30 days, or until you revoke it, without an account. It opens this one report and nothing else: not your files, not your other studies, and not your tax rate or what the study saves you at it.

This is an example study of an invented property: 47 components, and no uploaded documents. Its full report has nine sections, of which these are four pages. The PDF is saved from your browser's print dialog.

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Nine sections, in the order your preparer reads them

  1. Cover

    The property, who the study was prepared for and when. It says plainly that the study was prepared by software from what you provided.

    For everyone
  2. Summary

    The depreciable basis, what went into each class and its share, and year one with the study beside year one without.

    For you
  3. The property and its basis

    The facts the study rests on, and each document that was read, with what was found in its text.

    For your preparer
  4. Method

    Where the components come from, how each is matched to a row of the IRS's guide, and what the software did not do.

    For your preparer
  5. Asset schedule

    Every component: the IRS row it was matched to, its cost, where the cost came from and the reason for its class.

    For your preparer
  6. Depreciation schedule

    Year by year, with a column for each class, with the study and without. Short classes use the half-year convention, the building mid-month.

    For your preparer
  7. Estimates

    Each cost that is an estimate and not a record, with its range, so your preparer knows which figures to test first.

    For your preparer
  8. Sources

    Every rule and publication the study cites, with the date it was retrieved.

    For your preparer
  9. For your tax preparer

    A checklist of what to confirm before filing: the land allocation, the conventions, and the limits that were not worked out for you.

    For your preparer

Where the figures come from

A source on every line

A study is only as good as what stands behind it. In ours, nothing is asserted without saying where it comes from.

  • The rule behind each class

    A class comes from a row of the IRS's guide, and the report prints which one: kitchen appliances in a rental are 5-year property under Publication 5653, page 311.

  • Your own files behind each fact

    A figure read from your closing statement or seen in a photo says which document it came from, and whether it was found in the document's own text.

  • Estimates are marked as estimates

    A cost with no record behind it is labelled in the schedule and listed again in a section of its own, with its range.

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Publication 5653 · Page 311

Residential rental

AssetDescriptionPeriod
Kitchen Appliances5-year

Cost Segregation Audit Technique Guide

IRS Publication 5653Residential rental table · p. 311
Kitchen Appliances5-year
Publication 5653 is written for IRS examiners and is not legal authority. It says so on its first page.

The same study, without the invoice or the six-week wait

NoCostSegTraditional studyOnline software
Price$0$2,300 to $12,000$499 to $950
TurnaroundSame day2 to 6 weeksMinutes to 5 days
Property typesResidential; commercial in betaAnySmall residential
Site visitYour photos and plansIn person or by videoNone
Professional reviewOptional, from a partner CPAIncluded in the feeExtra, or none

Other providers' prices and turnaround are ranges from their public pages, November 2026.

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The NoCostSeg guarantee

  • Your study is free. No card, no call, no "starting at".
  • Every figure has a source. Each one traces to a document you gave us or a rule we cite.
  • We stand by the method. If the IRS asks about our method, we answer in writing at no charge.
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Questions about the study

What does a cost segregation study include?

Ours has nine sections: a cover, a summary, the property and its basis, the method, the asset schedule, the depreciation schedule, the estimates, the sources, and a checklist for your tax preparer. The asset schedule is the heart of it: every component with its class, its cost and the IRS row it was matched to.

Is the example on this page a real property?

No. It is an invented rental home, run through the same software that prepares a real study, so every figure is computed and none is typed in. A real study is built from your own closing statement, photos and plans.

What files do I get?

Three things. The report, which you save as a PDF from your browser's print dialog. The depreciation schedule as a CSV file, for a spreadsheet or fixed-asset software. And a read-only link to the report that you can send to your preparer and revoke.

Will my tax preparer accept it?

The report cites the row of the IRS's guide behind every class and the document behind every fact, so a preparer can check it line by line. Whether to file on it is their decision, and the last section lists what they need to confirm first.

Does the study tell me how much tax I save?

It shows the depreciation deductions, with the study and without, before your own tax limits. How much of that you can use this year depends on the passive-loss rules, your income and your state, and your CPA works that out.

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See what your building is worth in deductions

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