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 16.0% $29,720 26.5% A
Logan Square Two-Flat Investor
Logan Square / Avondale · DUPLEX
$545,000 17.4% $26,969 23.2% A_low
Pilsen Three-Flat BRRRR
Pilsen / Bridgeport (Lower West Side) · TRIPLEX
$425,000 17.6% $20,886 24.7% A_low
South Loop Condo Rental
South Loop / West Loop (downtown-adjacent condo) · CONDO
$685,000 11.9% $15,469 48.9% C
Oak Park Suburban SFR LTR
Oak Park / Evanston (suburban Cook County) · SFR
$485,000 15.8% $21,886 23.1% 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

$29,720
Year-1 federal savings @ 37%, 100% bonus
16.0%
5/7/15-yr reclass as % of depreciable basis
$503,338
Depreciable basis (26.5% land removed)

Component breakdown

MACRS classReclassified amount% of basis
5-year personal property (FF&E, appliances, decorative finishes, certain electrical)$44,2338.8%
7-year personal property (office equipment, certain agricultural)$00.0%
15-year land improvements (paving, landscaping, fencing, site lighting)$36,0937.2%
Total accelerated$80,32616.0%
27.5-Year Residential Real Property structure (39yr commercial)$423,01284.0%

Land allocation note

For this fixture, the engine used 26.5% 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 1.2063 (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

$26,969
Year-1 federal savings @ 37%, 100% bonus
17.4%
5/7/15-yr reclass as % of depreciable basis
$418,778
Depreciable basis (23.2% land removed)

Component breakdown

MACRS classReclassified amount% of basis
5-year personal property (FF&E, appliances, decorative finishes, certain electrical)$42,32310.1%
7-year personal property (office equipment, certain agricultural)$00.0%
15-year land improvements (paving, landscaping, fencing, site lighting)$30,5677.3%
Total accelerated$72,89017.4%
27.5-Year Residential Real Property structure (39yr commercial)$345,88882.6%

Land allocation note

For this fixture, the engine used 23.2% 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 0.736 (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

$20,886
Year-1 federal savings @ 37%, 100% bonus
17.6%
5/7/15-yr reclass as % of depreciable basis
$320,195
Depreciable basis (24.7% land removed)

Component breakdown

MACRS classReclassified amount% of basis
5-year personal property (FF&E, appliances, decorative finishes, certain electrical)$36,34011.3%
7-year personal property (office equipment, certain agricultural)$00.0%
15-year land improvements (paving, landscaping, fencing, site lighting)$20,1086.3%
Total accelerated$56,44817.6%
27.5-Year Residential Real Property structure (39yr commercial)$263,74782.4%

Land allocation note

For this fixture, the engine used 24.7% 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 0.5663 (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

$15,469
Year-1 federal savings @ 37%, 100% bonus
11.9%
5/7/15-yr reclass as % of depreciable basis
$349,889
Depreciable basis (48.9% land removed)

Component breakdown

MACRS classReclassified amount% of basis
5-year personal property (FF&E, appliances, decorative finishes, certain electrical)$38,38111.0%
7-year personal property (office equipment, certain agricultural)$00.0%
15-year land improvements (paving, landscaping, fencing, site lighting)$3,4281.0%
Total accelerated$41,80811.9%
27.5-Year Residential Real Property structure (39yr commercial)$308,08088.1%

Land allocation note

For this fixture, the engine used 48.9% land allocation from source: statistical_premium_floor. This means the engine's component-bottom-up reconstruction cost exceeded 2.0× the implied depreciable basis after subtracting land, the premium land floor was applied to keep the study within audit-defensible territory. This is common for resort-tier properties where land scarcity premiums dominate the purchase price.

Reconciliation

The engine computed a reconciliation factor (rf_raw) of 1.5367 (C 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

$21,886
Year-1 federal savings @ 37%, 100% bonus
15.8%
5/7/15-yr reclass as % of depreciable basis
$373,159
Depreciable basis (23.1% land removed)

Component breakdown

MACRS classReclassified amount% of basis
5-year personal property (FF&E, appliances, decorative finishes, certain electrical)$31,3218.4%
7-year personal property (office equipment, certain agricultural)$00.0%
15-year land improvements (paving, landscaping, fencing, site lighting)$27,8297.5%
Total accelerated$59,15015.8%
27.5-Year Residential Real Property structure (39yr commercial)$314,00984.1%

Land allocation note

For this fixture, the engine used 23.1% 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 0.7897 (A_low band). Geographic factor: 1.08 (state resolver).

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