Cost Segregation Study Example: A Full 40+ Page Sample Report
Every study is a 40+ page professional PDF with component-level analysis, depreciation schedules, and full IRS documentation. Below is a real example from a completed study — and three additional property-type breakdowns.
Watch: Inside a Cost Seg Smart Report
What's in a 40+ Page Report?
Every cost segregation study we deliver contains the following sections. This is not a summary or estimate — it's a full engineering-based analysis your CPA files directly.
| Section | Pages |
|---|---|
| Cover Page + Study Summary | 1-2 |
| Executive Summary (key findings, Year 1 tax impact, ROI) | 1 |
| MACRS Class Allocation Summary + Pie Chart | 1-2 |
| Component-Level Detail (every item with MACRS class, cost, source) | 4-8 |
| Depreciation Schedules (5yr, 7yr, 15yr, 27.5yr/39yr) | 4-6 |
| Year-by-Year Depreciation Forecast | 2-3 |
| NPV Analysis (present value of tax savings) | 1 |
| Methodology (data sources, observation procedures, ATG compliance) | 2-3 |
| Engineering Narrative (property description, regional context) | 3-5 |
| Legal Framework + IRS Citations | 2-3 |
| Appendices (Form 4562 schedules, cost source references, glossary) | 3-5 |
| Total | 40+ pages |
Below is a section-by-section walkthrough of what each part contains, using a $750K Nashville STR as the example. We've tracked the full breakdown in our cost segregation study cost guide so you know what each tier of provider charges for this kind of report.
Executive Summary
The first page of every report is a one-page executive summary. It gives your CPA the key numbers at a glance: purchase price, land allocation, depreciable basis, and the total amount reclassified into accelerated depreciation categories.
Here is what the summary looks like for a representative property:
Cost Segregation Study — Executive Summary
$750,000 Short-Term Rental — Nashville, TN | 2,400 SF | Built 2018
MACRS Class Breakdown
After the executive summary, the report breaks down the depreciable basis by IRS MACRS asset class. Each component is classified per Revenue Procedure 87-56 into its correct recovery period.
Component Detail (Excerpt)
The largest section of the report is the component-level inventory. Every reclassified item is listed individually with its MACRS classification, allocated cost, and cost source. Here are 10 representative line items from this Nashville STR:
| Component | MACRS Class | Cost | Source |
|---|---|---|---|
| Kitchen cabinets & countertops | 5-Year | $18,500 | RSMeans 2024 |
| Flooring (hardwood, tile, carpet) | 5-Year | $22,000 | RSMeans 2024 |
| Appliances (all) | 5-Year | $8,500 | RSMeans 2024 |
| Bathroom fixtures & vanities | 5-Year | $12,000 | RSMeans 2024 |
| Interior lighting | 5-Year | $6,500 | RSMeans 2024 |
| Furniture (beds, sofas, tables) | 5-Year | $35,000 | Owner-provided |
| Electronics (TVs, smart home) | 5-Year | $4,500 | Owner-provided |
| Landscaping & irrigation | 15-Year | $18,000 | RSMeans 2024 |
| Driveway & walkways | 15-Year | $15,000 | RSMeans 2024 |
| Outdoor lighting & fencing | 15-Year | $9,000 | RSMeans 2024 |
What Your CPA Receives
Every completed study is a single PDF document (typically 40+ pages) containing all of the following:
- Executive summary with key findings and Year 1 tax impact
- Complete component inventory with MACRS classification
- Depreciation schedules (5-year, 7-year, 15-year, 27.5-year)
- Year-by-year depreciation forecast through full recovery period
- IRS methodology documentation (ATG 13 principal elements) — understand audit risk
- Audit support documentation and data source references
- Form 4562 reference schedules for direct CPA filing
Methodology
Every Cost Seg Smart study follows the IRS Cost Segregation Audit Techniques Guide and addresses all 13 principal elements required for a compliant study.
Component costs are derived from RSMeans 2024 regional construction cost data, adjusted for property age, quality tier, and geographic location. Classification follows IRS Revenue Procedure 87-56 asset class definitions and IRC Section 168 recovery period rules.
Property data is sourced from county assessor records, satellite and street-level imagery, building permit databases, and public data APIs. The observation methodology and all data sources are documented in the report for full audit transparency.
Quick Comparisons: Cost Seg by Property Type
The Nashville STR walkthrough above is one in-depth example. Below are three quick comparisons across different property types — a single-family rental, an apartment building, and a retail strip center — so you can see at a glance how the allocation changes. For the full 40+ page PDF version of each, use the download links in the cards or jump to the full sample library below.
Example 1: $500K Single-Family Rental
Atlanta, GA · 2,100 SF · Built 2014 · Unfurnished long-term rental
A standard single-family rental is the cleanest example of how cost segregation works. The building is the bulk of the value, but about 18–22% of the depreciable basis reclassifies into shorter-lived categories: interior finishes (flooring, cabinetry), specialty electrical, HVAC components, appliances, and site improvements (driveway, landscaping, fencing).
For this Atlanta property, $84,500 reclassified from the 27.5-year building into 5-year, 7-year, and 15-year categories. With 100% bonus depreciation, that entire amount is deductible in Year 1. Download the SFR sample PDF.
Example 2: $1.2M Apartment Building (8 units)
Charlotte, NC · 6,400 SF · Built 2003 · 8-unit multifamily
Multifamily properties reclassify more aggressively than single-family rentals because of the multiplication effect — every unit has its own kitchen, bathroom, flooring, and specialty electrical. Shared systems like the roof and foundation remain 27.5-year property, but the per-unit components stack up quickly.
This Charlotte 8-plex reclassified $256,000 into accelerated categories — 27% of building basis — driven heavily by the eight separate kitchen and bathroom systems. Download the multifamily sample PDF.
Example 3: $2M Retail Strip Center
Tampa, FL · 8,000 SF · Built 1998 · 4-tenant strip center
Commercial retail has the longest default depreciation schedule (39 years), which means every dollar moved to a shorter class saves more time value. The big drivers in a retail cost seg study are tenant improvements, HVAC, parking lot, exterior lighting, signage, and specialty electrical.
This Tampa strip center reclassified $465,000 from the 39-year building into shorter categories — 29% of building basis. The parking lot alone accounted for $142,000 (15-year property). Download the retail sample PDF.
Looking for examples across additional providers or price points? CostSegregationReviews.com has side-by-side comparisons of 25 cost segregation firms and the kinds of studies they produce.
Want to understand what each section means?
Our section-by-section walkthrough explains every page of the report — what your CPA looks for, what the IRS requires, and how to evaluate any provider's sample.
Read the full walkthrough →Example vs. Sample vs. Template — What's the Difference?
Is there a difference between a cost seg "example" and a "sample report"?
In practice, no — both terms point to the same thing: a completed cost segregation study you can look at before ordering one for your own property. Some providers use "sample" (formal, PDF-style) and others use "example" (casual, case-study-style). The report above is both.
Can I use your example as a template for my own study?
No — and this is actually important. A template-based cost segregation study applies generic percentage allocations to every property regardless of its specific components. The IRS flags this as a risk in Publication 5653 (the Audit Techniques Guide). Every defensible study — including the examples above — is generated from the specific property's data, not copied from a template. If you use our report as a template for your own filing, you're not doing cost segregation; you're just using made-up numbers. Before you commit, try the cost segregation calculator for your property to see what your own report would project.
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