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 14.9% $28,168 25.5% B
Logan Square Two-Flat Investor
Logan Square / Avondale · DUPLEX
$545,000 11.6% $17,516 25.0% A_low
Pilsen Three-Flat BRRRR
Pilsen / Bridgeport (Lower West Side) · TRIPLEX
$425,000 12.7% $15,003 25.0% A_low
South Loop Condo Rental
South Loop / West Loop (downtown-adjacent condo) · CONDO
$685,000 10.2% $13,135 48.9% C
Oak Park Suburban SFR LTR
Oak Park / Evanston (suburban Cook County) · SFR
$485,000 11.2% $15,604 22.0% A

"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

$28,168
Year-1 federal savings @ 37%, 100% bonus
14.9%
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)$39,4157.7%
7-year personal property (office equipment, certain agricultural)$00.0%
15-year land improvements (paving, landscaping, fencing, site lighting)$36,7167.2%
Total accelerated$76,13114.9%
27.5-Year Residential Real Property structure (39yr commercial)$434,19485.1%

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 1.2842 (B 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

$17,516
Year-1 federal savings @ 37%, 100% bonus
11.6%
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)$31,9107.8%
7-year personal property (office equipment, certain agricultural)$00.0%
15-year land improvements (paving, landscaping, fencing, site lighting)$15,4303.8%
Total accelerated$47,34011.6%
27.5-Year Residential Real Property structure (39yr commercial)$361,41088.4%

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 0.7931 (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

$15,003
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)$29,1839.2%
7-year personal property (office equipment, certain agricultural)$00.0%
15-year land improvements (paving, landscaping, fencing, site lighting)$11,3653.6%
Total accelerated$40,54812.7%
27.5-Year Residential Real Property structure (39yr commercial)$278,20287.3%

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 0.6167 (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

$13,135
Year-1 federal savings @ 37%, 100% bonus
10.2%
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)$32,1899.2%
7-year personal property (office equipment, certain agricultural)$00.0%
15-year land improvements (paving, landscaping, fencing, site lighting)$3,3120.9%
Total accelerated$35,50110.2%
27.5-Year Residential Real Property structure (39yr commercial)$314,38889.9%

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 1.6138 (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

$15,604
Year-1 federal savings @ 37%, 100% bonus
11.2%
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)$29,4707.8%
7-year personal property (office equipment, certain agricultural)$00.0%
15-year land improvements (paving, landscaping, fencing, site lighting)$12,7033.4%
Total accelerated$42,17311.2%
27.5-Year Residential Real Property structure (39yr commercial)$336,12788.9%

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 0.8914 (A band). Geographic factor: 1.08 (state resolver).

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