Houston cost segregation examples

5 representative Houston-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
Houston Heights Bungalow Flip
Houston Heights / Garden Oaks · SFR
$525,000 16.0% $25,412 18.1% A
Montrose Townhome Rental
Montrose / Museum District · CONDO
$625,000 12.1% $22,710 19.1% C
Sugar Land Suburban SFR
Sugar Land / Fort Bend County (suburban) · SFR
$385,000 16.3% $18,191 21.7% A_low
Woodlands Master-Planned Rental
The Woodlands / Montgomery County (suburban) · SFR
$425,000 16.5% $20,773 19.7% A_low
Pearland BRRRR Fourplex
Pearland / Friendswood (Brazoria County) · FOURPLEX
$485,000 19.8% $28,192 20.8% 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.

Houston Heights Bungalow Flip

Houston Heights / Garden Oaks · SFR (long-term rental) · Built 1932 · 1700 sqft

$25,412
Year-1 federal savings @ 37%, 100% bonus
16.0%
5/7/15-yr reclass as % of depreciable basis
$429,922
Depreciable basis (18.1% land removed)

Component breakdown

MACRS classReclassified amount% of basis
5-year personal property (FF&E, appliances, decorative finishes, certain electrical)$39,5799.2%
7-year personal property (office equipment, certain agricultural)$00.0%
15-year land improvements (paving, landscaping, fencing, site lighting)$29,1026.8%
Total accelerated$68,68116.0%
27.5-Year Residential Real Property structure (39yr commercial)$361,24184.0%

Land allocation note

For this fixture, the engine used 18.1% 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 1.2079 (A band). Geographic factor: 0.9 (metro_calibrated resolver).

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Montrose Townhome Rental

Montrose / Museum District · CONDO (long-term rental) · Built 2010 · 2100 sqft

$22,710
Year-1 federal savings @ 37%, 100% bonus
12.1%
5/7/15-yr reclass as % of depreciable basis
$505,875
Depreciable basis (19.1% land removed)

Component breakdown

MACRS classReclassified amount% of basis
5-year personal property (FF&E, appliances, decorative finishes, certain electrical)$56,35711.1%
7-year personal property (office equipment, certain agricultural)$00.0%
15-year land improvements (paving, landscaping, fencing, site lighting)$5,0221.0%
Total accelerated$61,37912.1%
27.5-Year Residential Real Property structure (39yr commercial)$444,49687.9%

Land allocation note

For this fixture, the engine used 19.1% 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 1.7012 (C band). Geographic factor: 0.9 (metro_calibrated resolver).

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Sugar Land Suburban SFR

Sugar Land / Fort Bend County (suburban) · SFR (long-term rental) · Built 2008 · 2300 sqft

$18,191
Year-1 federal savings @ 37%, 100% bonus
16.3%
5/7/15-yr reclass as % of depreciable basis
$301,494
Depreciable basis (21.7% land removed)

Component breakdown

MACRS classReclassified amount% of basis
5-year personal property (FF&E, appliances, decorative finishes, certain electrical)$28,4729.4%
7-year personal property (office equipment, certain agricultural)$00.0%
15-year land improvements (paving, landscaping, fencing, site lighting)$20,6926.9%
Total accelerated$49,16516.3%
27.5-Year Residential Real Property structure (39yr commercial)$252,32983.7%

Land allocation note

For this fixture, the engine used 21.7% 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 0.6766 (A_low band). Geographic factor: 0.92 (state resolver).

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Woodlands Master-Planned Rental

The Woodlands / Montgomery County (suburban) · SFR (long-term rental) · Built 2012 · 2200 sqft

$20,773
Year-1 federal savings @ 37%, 100% bonus
16.5%
5/7/15-yr reclass as % of depreciable basis
$341,190
Depreciable basis (19.7% land removed)

Component breakdown

MACRS classReclassified amount% of basis
5-year personal property (FF&E, appliances, decorative finishes, certain electrical)$33,4499.8%
7-year personal property (office equipment, certain agricultural)$00.0%
15-year land improvements (paving, landscaping, fencing, site lighting)$22,6946.7%
Total accelerated$56,14316.5%
27.5-Year Residential Real Property structure (39yr commercial)$285,04783.5%

Land allocation note

For this fixture, the engine used 19.7% 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 0.8223 (A_low band). Geographic factor: 0.92 (state resolver).

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Pearland BRRRR Fourplex

Pearland / Friendswood (Brazoria County) · FOURPLEX (long-term rental) · Built 1995 · 3200 sqft

$28,192
Year-1 federal savings @ 37%, 100% bonus
19.8%
5/7/15-yr reclass as % of depreciable basis
$384,266
Depreciable basis (20.8% land removed)

Component breakdown

MACRS classReclassified amount% of basis
5-year personal property (FF&E, appliances, decorative finishes, certain electrical)$52,61113.7%
7-year personal property (office equipment, certain agricultural)$00.0%
15-year land improvements (paving, landscaping, fencing, site lighting)$23,5836.1%
Total accelerated$76,19519.8%
27.5-Year Residential Real Property structure (39yr commercial)$308,07180.2%

Land allocation note

For this fixture, the engine used 20.8% 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 0.5286 (A_low band). Geographic factor: 0.92 (state resolver).

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