Los Angeles cost segregation examples

5 representative Los Angeles-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
Silver Lake Bungalow Flip
Silver Lake / Echo Park (Eastside) · SFR
$1,325,000 16.0% $43,063 45.0% A
Highland Park Craftsman + ADU
Highland Park / Eagle Rock · SFR
$1,050,000 16.0% $35,707 42.7% A
Mid-City Duplex Investor
Mid-City / Mid-Wilshire · DUPLEX
$1,485,000 17.7% $54,216 44.4% A
Sherman Oaks SFR + Detached ADU
Sherman Oaks / Valley Glen (San Fernando Valley) · SFR
$1,850,000 16.3% $68,239 38.7% B
South LA Fourplex
South LA / Leimert Park · FOURPLEX
$985,000 18.4% $38,850 42.1% 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.

Silver Lake Bungalow Flip

Silver Lake / Echo Park (Eastside) · SFR (long-term rental) · Built 1925 · 1850 sqft

$43,063
Year-1 federal savings @ 37%, 100% bonus
16.0%
5/7/15-yr reclass as % of depreciable basis
$728,750
Depreciable basis (45.0% land removed)

Component breakdown

MACRS classReclassified amount% of basis
5-year personal property (FF&E, appliances, decorative finishes, certain electrical)$67,5479.3%
7-year personal property (office equipment, certain agricultural)$00.0%
15-year land improvements (paving, landscaping, fencing, site lighting)$48,8396.7%
Total accelerated$116,38516.0%
27.5-Year Residential Real Property structure (39yr commercial)$612,36584.0%

Land allocation note

For this fixture, the engine used 45.0% 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 1.2474 (A band). Geographic factor: 1.13 (metro_calibrated resolver).

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Highland Park Craftsman + ADU

Highland Park / Eagle Rock · SFR (long-term rental) · Built 1922 · 1700 sqft

$35,707
Year-1 federal savings @ 37%, 100% bonus
16.0%
5/7/15-yr reclass as % of depreciable basis
$601,650
Depreciable basis (42.7% land removed)

Component breakdown

MACRS classReclassified amount% of basis
5-year personal property (FF&E, appliances, decorative finishes, certain electrical)$53,0168.8%
7-year personal property (office equipment, certain agricultural)$00.0%
15-year land improvements (paving, landscaping, fencing, site lighting)$43,4897.2%
Total accelerated$96,50516.0%
27.5-Year Residential Real Property structure (39yr commercial)$505,14584.0%

Land allocation note

For this fixture, the engine used 42.7% 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 1.1542 (A band). Geographic factor: 1.13 (metro_calibrated resolver).

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Mid-City Duplex Investor

Mid-City / Mid-Wilshire · DUPLEX (long-term rental) · Built 1928 · 2800 sqft

$54,216
Year-1 federal savings @ 37%, 100% bonus
17.7%
5/7/15-yr reclass as % of depreciable basis
$825,808
Depreciable basis (44.4% land removed)

Component breakdown

MACRS classReclassified amount% of basis
5-year personal property (FF&E, appliances, decorative finishes, certain electrical)$88,18210.7%
7-year personal property (office equipment, certain agricultural)$00.0%
15-year land improvements (paving, landscaping, fencing, site lighting)$58,3497.1%
Total accelerated$146,53017.7%
27.5-Year Residential Real Property structure (39yr commercial)$679,27882.3%

Land allocation note

For this fixture, the engine used 44.4% 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 1.0793 (A band). Geographic factor: 1.13 (metro_calibrated resolver).

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Sherman Oaks SFR + Detached ADU

Sherman Oaks / Valley Glen (San Fernando Valley) · SFR (long-term rental) · Built 1968 · 2600 sqft

$68,239
Year-1 federal savings @ 37%, 100% bonus
16.3%
5/7/15-yr reclass as % of depreciable basis
$1,133,865
Depreciable basis (38.7% land removed)

Component breakdown

MACRS classReclassified amount% of basis
5-year personal property (FF&E, appliances, decorative finishes, certain electrical)$104,7229.2%
7-year personal property (office equipment, certain agricultural)$00.0%
15-year land improvements (paving, landscaping, fencing, site lighting)$79,7097.0%
Total accelerated$184,43116.3%
27.5-Year Residential Real Property structure (39yr commercial)$949,43483.7%

Land allocation note

For this fixture, the engine used 38.7% 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 1.3527 (B band). Geographic factor: 1.18 (state resolver).

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South LA Fourplex

South LA / Leimert Park · FOURPLEX (long-term rental) · Built 1947 · 4200 sqft

$38,850
Year-1 federal savings @ 37%, 100% bonus
18.4%
5/7/15-yr reclass as % of depreciable basis
$569,921
Depreciable basis (42.1% land removed)

Component breakdown

MACRS classReclassified amount% of basis
5-year personal property (FF&E, appliances, decorative finishes, certain electrical)$67,13611.8%
7-year personal property (office equipment, certain agricultural)$00.0%
15-year land improvements (paving, landscaping, fencing, site lighting)$37,8656.6%
Total accelerated$105,00118.4%
27.5-Year Residential Real Property structure (39yr commercial)$464,92081.6%

Land allocation note

For this fixture, the engine used 42.1% 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 0.5071 (A_low band). Geographic factor: 1.13 (metro_calibrated resolver).

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