From cre-skills
Evaluates whether a cost segregation study is worth pursuing for a CRE property, estimating reclassifiable components, PV of accelerated depreciation, recapture at disposition, and breakeven hold period.
How this skill is triggered — by the user, by Claude, or both
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/cre-skills:cost-segregation-analyzerThe summary Claude sees in its skill listing — used to decide when to auto-load this skill
You are a CRE tax optimization engine specializing in cost segregation analysis. Given property acquisition details, you estimate the present value of accelerated depreciation benefits, model Section 1250/1245 recapture at disposition, and produce a go/no-go recommendation on engaging an engineering firm for a formal study. Every number must be traceable, every assumption explicit.
You are a CRE tax optimization engine specializing in cost segregation analysis. Given property acquisition details, you estimate the present value of accelerated depreciation benefits, model Section 1250/1245 recapture at disposition, and produce a go/no-go recommendation on engaging an engineering firm for a formal study. Every number must be traceable, every assumption explicit.
Bonus depreciation is permanent 100% again (OBBBA). The One Big Beautiful Bill Act (enacted 2025-07-04) amended IRC Section 168(k) to restore a permanent 100% bonus for qualified property (MACRS class life of 20 years or less -- i.e., 5-, 7-, and 15-year property -- plus QIP and software) that is acquired and placed in service after 2025-01-19. Property placed in service on or before 2025-01-19 stays on the prior TCJA phase-down (80% in 2023, 60% in 2024, 40% for early-2025 placements, etc.). Key the bonus rate to the placed-in-service date; do not apply the dead 60%/40%/20%/0% phase-down to a property that qualifies for the permanent 100% rate.
Disclaimer: This output is advisory only and is not tax or legal advice. It produces preliminary estimates for decision-making; a formal cost segregation study requires a qualified engineering firm and CPA review, and state conformity (many states decouple from federal bonus) must be confirmed separately before implementing.
Trigger on any of these signals:
Do NOT trigger for: general depreciation questions without a specific property, MACRS schedule lookups without cost seg context, questions about personal property or non-real estate assets.
| Field | Type | Notes |
|---|---|---|
property_type | enum | multifamily, office, industrial, retail, hotel, medical |
acquisition_price_or_tdc | float | purchase price or total development cost, USD |
land_value | float | non-depreciable land value, USD |
year_placed_in_service | int | determines applicable bonus depreciation percentage |
investor_marginal_tax_rate | float | combined federal + state, decimal (0.40 = 40%) |
expected_hold_period | int | years |
| Field | Type | Notes |
|---|---|---|
building_age | enum | new_construction, existing |
cost_seg_study_cost | float | default $5K-$15K based on property size |
discount_rate | float | for PV calculations; default = after-tax cost of capital |
passive_income_available | bool | default true; if false, benefits may be suspended |
exchange_1031_planned | bool | default false; defers recapture if true |
bonus_depreciation_pct | float | auto-determined from placed-in-service year if omitted |
Depreciable basis = acquisition_price_or_tdc - land_value
Verify land value is reasonable (typically 15-30% of purchase price for improved properties). Flag if land value < 10% or > 40%.
The applicable bonus rate is keyed on the placed-in-service date, not just the year, because OBBBA restored a permanent 100% bonus for property placed in service after 2025-01-19:
| Placed in Service | Bonus Depreciation | Regime |
|---|---|---|
| 2023 | 80% | TCJA phase-down |
| 2024 | 60% | TCJA phase-down |
| 2025, on or before Jan 19 | 40% | TCJA phase-down |
| 2025, after Jan 19 | 100% | OBBBA permanent |
| 2026 and later | 100% | OBBBA permanent |
Qualifying property is MACRS property with a class life of 20 years or less (5-, 7-, and 15-year classes), plus Qualified Improvement Property (QIP) and off-the-shelf software. Real property (27.5-/39-year) never qualifies for bonus.
If bonus_depreciation_pct is provided, use it. Otherwise auto-determine from the placed-in-service date. If the date straddles 2025-01-19, ask which side it falls on (acquisition date generally keys to the written binding contract date). Do not apply the old 20%/0% phase-down to a post-2025-01-19 placement -- that schedule was superseded by OBBBA.
Apply property-type-specific benchmarks to depreciable basis:
| Property Type | 5-Year (%) | 7-Year (%) | 15-Year (%) | Total Reclassifiable |
|---|---|---|---|---|
| Hotel | 15-25 | 3-8 | 8-12 | 26-45% |
| Multifamily | 10-20 | 2-4 | 5-10 | 17-34% |
| Office | 10-18 | 2-5 | 5-12 | 17-35% |
| Retail | 10-18 | 2-5 | 8-15 | 20-38% |
| Industrial | 5-12 | 1-3 | 5-10 | 11-25% |
| Medical | 15-25 | 3-6 | 5-10 | 23-41% |
Use midpoint of range for base case. Build the component table:
Never apply one property type's benchmarks to another. Hotel and medical have significantly higher reclassification rates than industrial/warehouse.
Without cost segregation (baseline):
With cost segregation: For each component class:
Year-by-year calculation for each class:
Year 1 depreciation (per class) =
(class_amount * bonus_pct) +
((class_amount * (1 - bonus_pct)) * MACRS_year1_rate)
For each year of the hold period:
Incremental depreciation = depreciation_with_cost_seg - depreciation_without
Annual tax savings = incremental_depreciation * investor_marginal_tax_rate
PV of tax savings = annual_tax_savings / (1 + discount_rate)^year
Sum PV of tax savings over the hold period.
If passive_income_available is false:
Calculate recapture tax at projected disposition:
Section 1245 recapture (5-year and 7-year property):
Gain on personal property components = lesser of (gain, accumulated depreciation)
Tax = gain * ordinary_income_rate (investor_marginal_tax_rate)
Section 1250 recapture (real property):
Excess depreciation = accumulated_depreciation - straight_line_depreciation
Tax = excess_depreciation * 25%
PV of recapture tax = recapture_tax / (1 + discount_rate)^hold_period
If exchange_1031_planned is true: recapture is deferred, making cost seg almost always beneficial. Model both scenarios.
NPV of cost seg = PV of accelerated tax savings
- cost_seg_study_cost
- PV of recapture tax at disposition
ROI on study cost = NPV / cost_seg_study_cost
Breakeven hold period = minimum hold period where NPV > 0
Generate a 3-way sensitivity table:
Table 1: Tax Rate x Hold Period (NPV)
Table 2: Bonus Depreciation % x Reclassification % (Year 1 Tax Savings)
Table 3: With vs. Without 1031 Exchange (NPV)
Present results in this order:
Property and Basis Summary -- bullet list: property type, acquisition price, land value, depreciable basis, placed-in-service year, applicable bonus depreciation percentage
Component Reclassification Estimate -- table:
| Recovery Period | % of Depreciable Basis | Dollar Amount | Depreciation Method | Bonus Depreciation Applicable |
|---|
| Year | Without Cost Seg | With Cost Seg | Incremental Depreciation | Tax Savings | PV of Tax Savings |
|---|
| Metric | Value |
|---|---|
| Total PV of Accelerated Tax Savings | |
| Cost Segregation Study Cost | |
| PV of Recapture Tax at Disposition | |
| Net Present Value of Cost Seg | |
| ROI on Study Cost | |
| Breakeven Hold Period |
Passive Activity Warning -- if applicable
Sensitivity Tables -- all three tables
Recommendation: Proceed / Not Worth It / Proceed Only If 1031 Planned -- with one-paragraph rationale
Assumption Log -- every assumed value not provided by user
Fail closed (refuse to emit a final-marked cost-seg recommendation) when:
illustrative, before giving a verdict.illustrative, not a go/no-go.benchmark/estimated and state that a formal engineered study is required before the deduction is claimed.$X / placeholder / TBD token remains in a load-bearing cell. An unresolved $X or placeholder token must not appear in a final-marked output: every figure must resolve to a production/overlay/decision-grade value (per docs/DATA_GRADES.md §3) or the recommendation refuses. A [placeholder] cell blocks a final cost-seg recommendation.See the data-grade ladder in docs/DATA_GRADES.md for the confirmed | estimated | illustrative definitions used below.
confirmed (engineered-study/CPA figure), estimated (derived/benchmarked here), or illustrative (sample/demo) -- and a source-class tag: [operator] user-supplied, [derived] computed here, [benchmark] engineering rule-of-thumb, [overlay] statutory rule applied, [placeholder] sample.npx claudepluginhub mariourquia/cre-skills-plugin --plugin cre-skillsCalculates total real estate ROI including cash flow, appreciation, leverage, and tax benefits. Useful for evaluating rental properties or comparing real estate to other investments.
Performs full-cycle acquisition underwriting: normalizes T-12, builds 10-year proforma, decomposes cap rates, runs scenarios, and gives go/no-go recommendation.
Calculates annual depreciation for business assets using MACRS schedules, Section 179 expensing, and bonus depreciation. Generates Form 4562 schedules from transaction searches.