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Cost segregation separates qualifying shorter-life components from the building. This example immediately depreciates 100% of that eligible basis-not 100% of the entire property or your cash investment. It assumes qualifying property acquired and placed in service after January 19, 2025, with no election out of bonus depreciation.

Our ballpark acquisition: 70% financing, 20% of purchase price allocated to nondepreciable land, and 30% of the remaining basis identified as bonus-eligible by cost segregation. The remaining building basis is depreciated over 27.5 years, using a July placed-in-service date and 5.5 months of first-year depreciation.

For each $100,000 invested, these assumptions produce approximately $80,000 of bonus depreciation plus $3,111 of regular depreciation: approximately $83,111 in first-year depreciation. These are example assumptions, not industry averages or an Axxis offering forecast. We assume all equity funds the purchase and allocations follow ownership proportionally; fees, reserves, improvements and special partnership allocations are excluded. Actual net tax losses also depend on property income and expenses.

No. A write-off reduces taxable income. The federal tax value shown is the difference between modeled federal tax before and after subtracting the full write-off. It assumes enough eligible income and full deductibility at the displayed income level. It is not a forecast of a refund or savings this year. State tax benefits are not included.

Generally, passive real estate losses cannot offset salary or stock-market income. They can usually offset eligible passive income, and unused losses may carry forward. If you are new to passive investing, you may have no immediate tax reduction. Exceptions and the timing of deductions depend on your circumstances.

Federal tax uses 2026 ordinary-income brackets and the standard deduction. State tax uses a simplified 2026 bracket and standard-deduction snapshot published in February 2026. It excludes state exemptions, credits, deduction phaseouts, recapture rules, local taxes and subsequent law changes. Some published brackets use prior-year amounts. The estimate also excludes payroll taxes, NIIT, capital gains, itemized deductions, AMT and other adjustments. Washington capital-gains tax is not modeled. Treat these figures as an orientation, not a tax-return calculation.