Did you know?
Does landscaping count in cost segregation?
Land isn’t depreciable. The site work invested in it is.
Bola Akinsanya · Founder, Unlevered · November 4, 2026
Yes. Plantings, lawn, planting beds, mulch, walkways, patios and irrigation are land improvements: 15-year property under Rev. Proc. 87-56, asset class 00.3. A study separates them from the land and the building, so they depreciate over 15 years instead of 27.5 or 39, and they qualify for bonus depreciation.
Someone paid for every hydrangea, every bed and every yard of mulch. The red oak that was growing there before you bought is different: it came with the land, and land never depreciates. Drawing that line is where the deduction comes from.
Build the yard
Tap any part to take it out of the yard or put it back. The native trees stay with the land.
What counts
Landscaped and planted
The ground
Every layer, priced
Built in
Add the amenities
What doesn’t
Native to the land
Eastern red cedarJuniperus virginianaLand. Not depreciable.
Red oakQuercus rubraLand. Not depreciable.
Eastern white pinePinus strobusLand. Not depreciable.Illustrative yard. Plant and surface rates from a Cape Cod study; irrigation, LawnStarter; amenities, top of HomeGuide average installed ranges (2026-11-04). Not tax advice.
With every part in, this illustrative Cape Cod yard holds $323,494 of 15-year property: plants, lawn, beds, a bluestone patio, irrigation and the amenities guests book for. None of it is land, and none of the native trees are in it.
Is land depreciable?
No. Land never wears out, so it is never depreciated. Its value comes off the purchase price before a study starts, which is why separating what was built from what came with the land matters.
Are native trees depreciable?
No. Trees and plants that grew on the site on their own, like a red oak or an eastern white pine, are part of the land. What someone planted and paid for is site work.
What about shrubs planted right against the house?
Shrubs planted close to the building, which would be destroyed if the building were replaced, can follow the building instead of the site work (Rev. Rul. 74-265).
Do a pool, hot tub, sauna or pickleball court count?
Built into the site, yes. An inground pool, a built-in hot tub and spa, a sport court and an outdoor kitchen are site work, 15-year property, like the patio and the plantings around them.
Can I deduct all of it in year one?
On a rental, 15-year property qualifies for bonus depreciation, and for property acquired after January 19, 2025 the rate is 100%, so it can be deducted in year one. Whether the deduction offsets your other income depends on the rental rules and your participation. Ask your CPA.
How does Unlevered separate site work from land?
Unlevered Geospatial Engineering™ maps the property plant by plant and surface by surface, tells what was built from what came with the land, and prices every line from local sources. Every number traces back to the evidence under it.
Wondering what your yard is worth? Start your estimate at unlevered.io/hello.
Illustrative yard modeled after a real Cape Cod study: plant and surface rates from that study, quantities and amenities added for illustration. 100% bonus applies to property acquired after January 19, 2025, on a qualifying rental. A deduction is not cash. Not tax advice.