Cost Segregation Study Examples: What the Numbers Actually Look Like
Below are real cost segregation study examples – complete with actual depreciation numbers – from projects Titan Echo has conducted for real estate investors, CPAs, and financial advisors. From properties under $100,000 to multi-million-dollar commercial real estate, these examples show that cost segregation isn’t limited by property size or type. Every study below was completed using our engineering-based methodology and carries Titan Echo’s 100% IRS audit success record – whether the property is worth under $100,000 or $10M+.
A Quick, Unexpected Example: Cost Segregation for Cold Storage Facilities
One of the more surprising property types eligible for cost segregation is cold storage. Walk into any cold storage facility and you’ll find a significant number of walk-in freezers, coolers, garbage rooms, and humidors – equipment that typically qualifies for 5-year depreciation instead of the standard 39-year schedule. It’s not the first property type most investors think of, but it’s one of the most reclassification-rich.
The cost segregation study examples below cover the full range we regularly work with - from a modest single-family rental to large-scale commercial real estate.
Example 1: Cost Segregation Study Example - Commercial Real Estate (Supermarket)
This cost segregation study example more than doubled the property's accumulated depreciation. Reclassified items included:
Other property types that qualify as non-residential commercial property: warehouses, department stores, auto dealerships, banks, restaurants and self-storage facilities.
Example 2: Cost Segregation Study Example - Residential Rental Property (High-Rise Condo)
Depreciation more than doubled on this real estate cost segregation example as well. Reclassified items included:
Other property types that qualify as residential rental property: apartments, duplexes/4-plexes, row/townhouses, condos, and rented single-family residences.
Example 3: Cost Segregation Study Example - Large Commercial Property
Because the study was completed in the first year of ownership, significant additional depreciation was realized by reclassifying personal property into 5- and 15-year assets — the same mechanism that powers bonus depreciation. Reclassified items included:
Other property types that qualify as large-scale commercial property: manufacturing facilities, laboratories, research facilities, cold storage facilities, and hospitals.
Example 4: Cost Segregation Study Example - Smaller Property Under $500,000
Size doesn't change the standard a study is held to. For properties with a basis under $500,000, Titan Echo offers a streamlined modeling tool - built on the same underlying database of completed, engineering-grade cost segregation studies that power our full-scope work on much larger properties.
This sample cost segregation study shows that even a smaller property produces a real, meaningful benefit - using the same engineering-based data foundation as the multi-million-dollar examples above, not a rough percentage guess.
Frequently Asked Questions (FAQs)
What does a cost segregation study report look like?
A completed report breaks a property’s depreciable basis into distinct asset categories – typically 5, 7, 15, and 27.5/39-year property – with supporting documentation for each reclassification, as shown in the examples above.
Is there a sample cost segregation report I can view?
The examples on this page function as real report summaries: original basis, pre- and post-study depreciation, and the specific items reclassified for each property.
Do cost segregation study examples differ by property size?
The reclassification methodology stays the same regardless of size – what changes is scale. As shown above, Titan Echo applies the same engineering-based standard from a property under $100,000 to multi-million-dollar commercial real estate.
The Bottom Line
Cost segregation isn’t limited to office buildings, small rentals, or multi-million-dollar properties exclusively – as these cost segregation study examples show, it applies at nearly any scale, from a $94,000 single-family rental to large-scale commercial real estate. With the Tax Cuts and Jobs Act (2017) and subsequent bonus depreciation provisions, the tax benefits of accelerating depreciation have only grown more significant.
