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 16.5% $45,177 44.1% B
Highland Park Craftsman + ADU
Highland Park / Eagle Rock · SFR
$1,050,000 17.3% $37,613 44.1% A
Mid-City Duplex Investor
Mid-City / Mid-Wilshire · DUPLEX
$1,485,000 12.4% $38,016 44.1% A
Sherman Oaks SFR + Detached ADU
Sherman Oaks / Valley Glen (San Fernando Valley) · SFR
$1,850,000 13.8% $56,704 40.0% B
South LA Fourplex
South LA / Leimert Park · FOURPLEX
$985,000 12.0% $25,387 42.0% 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.

Silver Lake Bungalow Flip

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

$45,177
Year-1 federal savings @ 37%, 100% bonus
16.5%
5/7/15-yr reclass as % of depreciable basis
$740,675
Depreciable basis (44.1% land removed)

Component breakdown

MACRS classReclassified amount% of basis
5-year personal property (FF&E, appliances, decorative finishes, certain electrical)$50,3036.8%
7-year personal property (office equipment, certain agricultural)$00.0%
15-year land improvements (paving, landscaping, fencing, site lighting)$71,7989.7%
Total accelerated$122,10116.5%
27.5-Year Residential Real Property structure (39yr commercial)$618,57483.5%

Land allocation note

For this fixture, the engine used 44.1% 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 1.3112 (B 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

$37,613
Year-1 federal savings @ 37%, 100% bonus
17.3%
5/7/15-yr reclass as % of depreciable basis
$586,950
Depreciable basis (44.1% land removed)

Component breakdown

MACRS classReclassified amount% of basis
5-year personal property (FF&E, appliances, decorative finishes, certain electrical)$40,9887.0%
7-year personal property (office equipment, certain agricultural)$00.0%
15-year land improvements (paving, landscaping, fencing, site lighting)$60,66810.3%
Total accelerated$101,65617.3%
27.5-Year Residential Real Property structure (39yr commercial)$485,29482.7%

Land allocation note

For this fixture, the engine used 44.1% 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 1.1521 (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

$38,016
Year-1 federal savings @ 37%, 100% bonus
12.4%
5/7/15-yr reclass as % of depreciable basis
$830,115
Depreciable basis (44.1% land removed)

Component breakdown

MACRS classReclassified amount% of basis
5-year personal property (FF&E, appliances, decorative finishes, certain electrical)$53,0546.4%
7-year personal property (office equipment, certain agricultural)$00.0%
15-year land improvements (paving, landscaping, fencing, site lighting)$49,6936.0%
Total accelerated$102,74712.4%
27.5-Year Residential Real Property structure (39yr commercial)$727,36887.6%

Land allocation note

For this fixture, the engine used 44.1% 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 1.162 (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

$56,704
Year-1 federal savings @ 37%, 100% bonus
13.8%
5/7/15-yr reclass as % of depreciable basis
$1,110,000
Depreciable basis (40.0% land removed)

Component breakdown

MACRS classReclassified amount% of basis
5-year personal property (FF&E, appliances, decorative finishes, certain electrical)$65,5665.9%
7-year personal property (office equipment, certain agricultural)$00.0%
15-year land improvements (paving, landscaping, fencing, site lighting)$87,6887.9%
Total accelerated$153,25413.8%
27.5-Year Residential Real Property structure (39yr commercial)$956,74686.2%

Land allocation note

For this fixture, the engine used 40.0% 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 1.3917 (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

$25,387
Year-1 federal savings @ 37%, 100% bonus
12.0%
5/7/15-yr reclass as % of depreciable basis
$571,300
Depreciable basis (42.0% land removed)

Component breakdown

MACRS classReclassified amount% of basis
5-year personal property (FF&E, appliances, decorative finishes, certain electrical)$43,7577.7%
7-year personal property (office equipment, certain agricultural)$00.0%
15-year land improvements (paving, landscaping, fencing, site lighting)$24,8574.4%
Total accelerated$68,61412.0%
27.5-Year Residential Real Property structure (39yr commercial)$502,68688.0%

Land allocation note

For this fixture, the engine used 42.0% 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 0.5941 (A_low band). Geographic factor: 1.13 (metro_calibrated resolver).

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