The Salt House Marion
$907K in, split into land, building, and remodel
The property was bought for $565,000 and remodeled for $341,964, $906,964 in all. Land never depreciates, so it's carved out first; everything else becomes depreciable basis the study then accelerates.
Where the $907K went
A remodel does two things at once
Placed in service May 15, 2025, this study applies a 1% bonus rate. A remodel triggers two deductions in the same year: the old components torn out are written off, and the new short-life improvements take 1% bonus.
Partial asset disposition
1% bonus on short-life
What the engine found
The deterministic engine separated the $545,873 depreciable basis into IRS recovery classes, then the engineered review confirmed every component against the source documents.
Component allocation
Year one, in dollars
| Accelerated depreciation | $184,555 |
| Partial-asset disposition write-off | $163,127 |
| Total year-one deduction | $347,681 |
| Straight-line without a study | ~$13,997/yr |
Depreciation by year
| Year 1 | $347,681 |
| Year 2 | $5,188 |
| Year 3 | $5,188 |
| Year 4 | $5,188 |
| Year 5 | $5,188 |
| Year 6 | $5,188 |
| Year 7 | $5,188 |
| Year 8 | $5,187 |
| Year 9 | $5,187 |
| Year 10 | $5,187 |
| Year 11 | $5,187 |
| Year 12 | $5,187 |
| Year 13 | $5,187 |
| Year 14 | $5,187 |
| Year 15 | $5,187 |
| Year 16 | $5,187 |
| Year 17 | $5,187 |
| Year 18 | $5,187 |
| Year 19 | $5,187 |
| Year 20 | $5,187 |
| Year 21 | $5,187 |
| Year 22 | $5,187 |
| Year 23 | $5,187 |
| Year 24 | $5,187 |
| Year 25 | $5,187 |
| Year 26 | $5,187 |
| Year 27 | $5,187 |
| Year 28 | $5,187 |
| Year 29 | $5,187 |
| Year 30 | $5,187 |
| Year 31 | $5,187 |
| Year 32 | $5,187 |
| Year 33 | $5,187 |
| Year 34 | $5,187 |
| Year 35 | $5,187 |
| Year 36 | $5,187 |
| Year 37 | $5,187 |
| Year 38 | $5,187 |
| Year 39 | $5,187 |
| Year 40 | $1,080 |
What each state does with this deduction
Each state this study touches, classified by how it treats the federal year-one deduction.
Lifetime difference: $0. Timing only, recovered in later years.
MA defers up to $146,778 of the deduction, then returns it over the following years, reaching $0 by year 14. The lifetime deduction is the same; only the timing differs.
You still get the federal deduction now. Massachusetts taxable income is $146,778 higher than federal in year one, but that amount is deducted in later years.
Use the federal schedule for the federal return and a Massachusetts recomputation schedule for the MA return.
Schedule: MA Schedule E adjustment
Common questions about this study
- What does a real cost segregation study look like?
- This is a complete, engineer-reviewed cost segregation study on a short-term rental property. Every figure is computed by a deterministic engine from source documents, cited to the underlying tax authority, and reproducible — including a 7-room component reclassification and a full depreciation schedule. Addresses and client identities are changed for privacy; the facts and dollars are true engine output.
- How much does this study accelerate into the first year?
- On a $565,000 property with $361,092 (64%) allocated to non-depreciable land, the study establishes $545,873 of depreciable basis and produces a $347,681 first-year deduction at 1% bonus depreciation.
- Is a cost segregation study like this defensible?
- It is built to the standards in the IRS Cost Segregation Audit Techniques Guide: each component is classified with a citation, the basis derivation is engineered rather than estimated, and every calculation is reproducible. Unlevered prepares and signs the engineering study; the property owner's CPA remains the sole tax return preparer.
- What makes these studies transparent?
- Every number traces to a source. The study shows the room-by-room allocation, the reasoning behind each component's classification, and a calculation that can be reproduced from the same inputs — not a black-box estimate.