Sample Low-Cost Cost Segregation Workpaper
A low-cost cost segregation workpaper is a short PDF that splits a rental property’s depreciable basis into recovery classes and shows the Year-1 deduction; this sample does it for a made-up fourplex.
Sample Property, 100 Example Lane, Anytown, is made up. It is a workpaper for your tax preparer, prepared from the information you provide.
Open the PDFWhat does the sample show?
| 5-year personal property | $108,160 | 16% |
| 15-year land improvements | $60,840 | 9% |
| 27.5-year residential rental building | $507,000 | 75% |
| Depreciable basis | $676,000 | 100% |
Year-1 deduction: $183,595, for property acquired after January 19, 2025 (100% bonus depreciation under IRC §168(k)) and placed in service in March 2025, before any owner-level limitation on using it.
What is inside?
- Each recovery class with its amount and share of the basis.
- The Year-1 deduction and the bonus depreciation rate it uses.
- Each short-life item listed with the source it was identified from.
- Built on the methodology in the IRS Cost Segregation Audit Techniques Guide.
Nothing on this page is tax advice. Talk with your tax advisor before you use any workpaper on a return.