Chicago cost segregation examples

5 representative Chicago-area properties run through the Cost Seg Smart engine. These aren't hypothetical, every number below comes from the same engine that produces real customer studies.

Summary table

Example Price Reclass % Y1 fed savings @ 37% Land % Recon band
Lincoln Park SFR Flip
Lincoln Park / Bucktown / Wicker Park · SFR
$685,000 15.9% $30,050 25.5% A
Logan Square Two-Flat Investor
Logan Square / Avondale · DUPLEX
$545,000 11.8% $17,872 25.0% A_low
Pilsen Three-Flat BRRRR
Pilsen / Bridgeport (Lower West Side) · TRIPLEX
$425,000 12.7% $14,920 25.0% A_low
South Loop Condo Rental
South Loop / West Loop (downtown-adjacent condo) · CONDO
$685,000 14.8% $28,125 25.0% D
Oak Park Suburban SFR LTR
Oak Park / Evanston (suburban Cook County) · SFR
$485,000 13.5% $18,850 22.0% A_low

"Recon band" reflects the engine's reconciliation factor (rf_raw): A = clean fit between component-bottom-up sum and depreciable basis; D = high cost-of-construction-vs-purchase ratio, premium land floor applied.

Lincoln Park SFR Flip

Lincoln Park / Bucktown / Wicker Park · SFR (long-term rental) · Built 1908 · 1850 sqft

$30,050
Year-1 federal savings @ 37%, 100% bonus
15.9%
5/7/15-yr reclass as % of depreciable basis
$510,325
Depreciable basis (25.5% land removed)

Component breakdown

MACRS classReclassified amount% of basis
5-year personal property (FF&E, appliances, decorative finishes, certain electrical)$31,2346.1%
7-year personal property (office equipment, certain agricultural)$00.0%
15-year land improvements (paving, landscaping, fencing, site lighting)$49,9839.8%
Total accelerated$81,21715.9%
27.5-Year Residential Real Property structure (39yr commercial)$429,10884.1%

Land allocation note

For this fixture, the engine used 25.5% land allocation from source: statistical. This is the statistical fallback when reliable county assessor data wasn't available or didn't pass the reliability gate. Estimate comes from the metro → state → national land-ratio hierarchy.

Reconciliation

The engine computed a reconciliation factor (rf_raw) of 1.2198 (A band). Geographic factor: 0.95 (metro_calibrated resolver).

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Logan Square Two-Flat Investor

Logan Square / Avondale · DUPLEX (long-term rental) · Built 1922 · 2800 sqft

$17,872
Year-1 federal savings @ 37%, 100% bonus
11.8%
5/7/15-yr reclass as % of depreciable basis
$408,750
Depreciable basis (25.0% land removed)

Component breakdown

MACRS classReclassified amount% of basis
5-year personal property (FF&E, appliances, decorative finishes, certain electrical)$24,4436.0%
7-year personal property (office equipment, certain agricultural)$00.0%
15-year land improvements (paving, landscaping, fencing, site lighting)$23,8595.8%
Total accelerated$48,30211.8%
27.5-Year Residential Real Property structure (39yr commercial)$360,44888.2%

Land allocation note

For this fixture, the engine used 25.0% land allocation from source: statistical. This is the statistical fallback when reliable county assessor data wasn't available or didn't pass the reliability gate. Estimate comes from the metro → state → national land-ratio hierarchy.

Reconciliation

The engine computed a reconciliation factor (rf_raw) of 0.7682 (A_low band). Geographic factor: 0.95 (metro_calibrated resolver).

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Pilsen Three-Flat BRRRR

Pilsen / Bridgeport (Lower West Side) · TRIPLEX (long-term rental) · Built 1898 · 3000 sqft

$14,920
Year-1 federal savings @ 37%, 100% bonus
12.7%
5/7/15-yr reclass as % of depreciable basis
$318,750
Depreciable basis (25.0% land removed)

Component breakdown

MACRS classReclassified amount% of basis
5-year personal property (FF&E, appliances, decorative finishes, certain electrical)$22,7767.1%
7-year personal property (office equipment, certain agricultural)$00.0%
15-year land improvements (paving, landscaping, fencing, site lighting)$17,5475.5%
Total accelerated$40,32312.7%
27.5-Year Residential Real Property structure (39yr commercial)$278,42787.3%

Land allocation note

For this fixture, the engine used 25.0% land allocation from source: statistical. This is the statistical fallback when reliable county assessor data wasn't available or didn't pass the reliability gate. Estimate comes from the metro → state → national land-ratio hierarchy.

Reconciliation

The engine computed a reconciliation factor (rf_raw) of 0.6076 (A_low band). Geographic factor: 0.95 (metro_calibrated resolver).

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South Loop Condo Rental

South Loop / West Loop (downtown-adjacent condo) · CONDO (long-term rental) · Built 2014 · 1350 sqft

$28,125
Year-1 federal savings @ 37%, 100% bonus
14.8%
5/7/15-yr reclass as % of depreciable basis
$513,750
Depreciable basis (25.0% land removed)

Component breakdown

MACRS classReclassified amount% of basis
5-year personal property (FF&E, appliances, decorative finishes, certain electrical)$71,59413.9%
7-year personal property (office equipment, certain agricultural)$00.0%
15-year land improvements (paving, landscaping, fencing, site lighting)$4,4190.9%
Total accelerated$76,01314.8%
27.5-Year Residential Real Property structure (39yr commercial)$437,73785.2%

Land allocation note

For this fixture, the engine used 25.0% land allocation from source: statistical. This is the statistical fallback when reliable county assessor data wasn't available or didn't pass the reliability gate. Estimate comes from the metro → state → national land-ratio hierarchy.

Reconciliation

The engine computed a reconciliation factor (rf_raw) of 2.1416 (D band). Geographic factor: 0.95 (metro_calibrated resolver).

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Oak Park Suburban SFR LTR

Oak Park / Evanston (suburban Cook County) · SFR (long-term rental) · Built 1925 · 2100 sqft

$18,850
Year-1 federal savings @ 37%, 100% bonus
13.5%
5/7/15-yr reclass as % of depreciable basis
$378,300
Depreciable basis (22.0% land removed)

Component breakdown

MACRS classReclassified amount% of basis
5-year personal property (FF&E, appliances, decorative finishes, certain electrical)$20,1745.3%
7-year personal property (office equipment, certain agricultural)$00.0%
15-year land improvements (paving, landscaping, fencing, site lighting)$30,7738.1%
Total accelerated$50,94713.5%
27.5-Year Residential Real Property structure (39yr commercial)$327,35386.5%

Land allocation note

For this fixture, the engine used 22.0% land allocation from source: statistical. This is the statistical fallback when reliable county assessor data wasn't available or didn't pass the reliability gate. Estimate comes from the metro → state → national land-ratio hierarchy.

Reconciliation

The engine computed a reconciliation factor (rf_raw) of 0.8325 (A_low band). Geographic factor: 1.08 (state resolver).

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