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 16.3% $25,862 18.4% A
Montrose Townhome Rental
Montrose / Museum District · CONDO
$625,000 12.4% $23,581 18.0% C
Sugar Land Suburban SFR
Sugar Land / Fort Bend County (suburban) · SFR
$385,000 14.4% $16,378 20.0% A_low
Woodlands Master-Planned Rental
The Woodlands / Montgomery County (suburban) · SFR
$425,000 14.7% $18,530 20.0% A_low
Pearland BRRRR Fourplex
Pearland / Friendswood (Brazoria County) · FOURPLEX
$485,000 13.7% $19,708 20.0% 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.

Houston Heights Bungalow Flip

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

$25,862
Year-1 federal savings @ 37%, 100% bonus
16.3%
5/7/15-yr reclass as % of depreciable basis
$428,610
Depreciable basis (18.4% land removed)

Component breakdown

MACRS classReclassified amount% of basis
5-year personal property (FF&E, appliances, decorative finishes, certain electrical)$26,5966.2%
7-year personal property (office equipment, certain agricultural)$00.0%
15-year land improvements (paving, landscaping, fencing, site lighting)$43,30210.1%
Total accelerated$69,89816.3%
27.5-Year Residential Real Property structure (39yr commercial)$358,71283.7%

Land allocation note

For this fixture, the engine used 18.4% 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 1.159 (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

$23,581
Year-1 federal savings @ 37%, 100% bonus
12.4%
5/7/15-yr reclass as % of depreciable basis
$512,500
Depreciable basis (18.0% land removed)

Component breakdown

MACRS classReclassified amount% of basis
5-year personal property (FF&E, appliances, decorative finishes, certain electrical)$59,27511.6%
7-year personal property (office equipment, certain agricultural)$00.0%
15-year land improvements (paving, landscaping, fencing, site lighting)$4,4570.9%
Total accelerated$63,73212.4%
27.5-Year Residential Real Property structure (39yr commercial)$448,76887.6%

Land allocation note

For this fixture, the engine used 18.0% 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 1.7223 (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

$16,378
Year-1 federal savings @ 37%, 100% bonus
14.4%
5/7/15-yr reclass as % of depreciable basis
$308,000
Depreciable basis (20.0% land removed)

Component breakdown

MACRS classReclassified amount% of basis
5-year personal property (FF&E, appliances, decorative finishes, certain electrical)$21,8897.1%
7-year personal property (office equipment, certain agricultural)$00.0%
15-year land improvements (paving, landscaping, fencing, site lighting)$22,3777.3%
Total accelerated$44,26614.4%
27.5-Year Residential Real Property structure (39yr commercial)$263,73485.6%

Land allocation note

For this fixture, the engine used 20.0% 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 0.7193 (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

$18,530
Year-1 federal savings @ 37%, 100% bonus
14.7%
5/7/15-yr reclass as % of depreciable basis
$340,000
Depreciable basis (20.0% land removed)

Component breakdown

MACRS classReclassified amount% of basis
5-year personal property (FF&E, appliances, decorative finishes, certain electrical)$24,7947.3%
7-year personal property (office equipment, certain agricultural)$00.0%
15-year land improvements (paving, landscaping, fencing, site lighting)$25,2867.4%
Total accelerated$50,08014.7%
27.5-Year Residential Real Property structure (39yr commercial)$289,92085.3%

Land allocation note

For this fixture, the engine used 20.0% 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 0.8258 (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

$19,708
Year-1 federal savings @ 37%, 100% bonus
13.7%
5/7/15-yr reclass as % of depreciable basis
$388,000
Depreciable basis (20.0% land removed)

Component breakdown

MACRS classReclassified amount% of basis
5-year personal property (FF&E, appliances, decorative finishes, certain electrical)$34,5138.9%
7-year personal property (office equipment, certain agricultural)$00.0%
15-year land improvements (paving, landscaping, fencing, site lighting)$18,7514.8%
Total accelerated$53,26413.7%
27.5-Year Residential Real Property structure (39yr commercial)$334,73686.3%

Land allocation note

For this fixture, the engine used 20.0% 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 0.6013 (A_low band). Geographic factor: 0.92 (state resolver).

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