Reminder - End of Year is Coming - Consider a Cost Segregation Study on your property

Real Estate Consultant
Indianapolis, IN

Posted October 23, 2025 09:46

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Hello All,

Last year I did my first Cost Segregation study on a STR property I own in Butler-Tarkington, Indianapolis, IN. I was able to produce a ~$40K write-off, which translated to some nice tax savings. This year, I'm looking to do one on our new construction duplex in Indy. The property is worth $500,000 roughly and this should lead to a $60-65K depreciation deduction from a mixture of long-term depreciable assets and short term (furniture, finishes, sidewalks, landscaping, etc.). I expect my income to be around $200,000 this year, so at the marginal tax bracket I am in I expect a $15-20K savings on my taxes.

Things to Keep in Mind:

1) Right now we are at 60% bonus depreciation, meaning 60% of the depreciable assets can be deducted "all the way" this year.

2) The true gains from this come if you are in real estate tax professional status. Essentially that means you need your real estate license or a certain percentage of your working hours dedicated to real estate activities.

3) The studies usually cost between $2-5K. I have used some good vendors online that were extremely affordable. The URL has a link to the one I used.

If anyone wants more information please do hit me up. DISCLAIMER: This is not financial or legal advice and consult your advisors. I am a Realtor / Broker NOT a CPA.