Golf Course Cost Segregation
The three positions our estimate uses for this property type, the components a study itemizes in the shorter lives, and an illustrative example from our estimate engine.
Conservative
50%
of building basis excluding land
Middle of the Road
65%
of building basis excluding land
Aggressive
87%
of building basis excluding land
The shares our estimate uses for this property type. What the three positions mean
Expected reclassification range 50% to 87%, midpoint 65%
The comparative band for every property type is SmartCostSeg house judgment used to gauge an allocation against the type's own Conservative, Middle of the Road and Aggressive positions; it is not an IRS threshold, an industry percentile or a published median.
The Conservative, Middle of the Road and Aggressive percentages for Golf Course are SmartCostSeg house judgment with no source document behind them.
An Illustrative Example
Illustrative example computed by our estimate engine: purchase price $2,000,000, land $300,000 at the engine's default share of the price, acquired and placed in service January 1, 2026, so the engine applies a 100% bonus rate. The price and the land share are inputs for this example, not figures for this property type. Results vary with property specifics and your tax situation.
The estimate keeps the building on its 39 year life.
Building basis $1,700,000. First year depreciation without a study $43,590.
| Measure | Conservative | Middle of the Road | Aggressive |
|---|---|---|---|
| Share of the building basis moved | 50% | 65% | 87% |
| Moved to shorter lives | $850,000 | $1,105,000 | $1,479,000 |
| First year depreciation with a study | $871,795 | $1,120,256 | $1,484,667 |
| Additional first year deduction | $828,205 | $1,076,666 | $1,441,077 |
The Middle of the Road position, by class
- Modeled in the 5 year class$148,750
- Modeled in the 15 year class$956,250
- Building on its 39 year life$595,000
First year federal tax savings at each bracket, Middle of the Road
- At the 24% federal bracket: $258,400
- At the 32% federal bracket: $344,533
- At the 35% federal bracket: $376,833
- At the 37% federal bracket: $398,366
Federal income tax only. Your CPA confirms your bracket and any state effect.
These savings assume the full deduction can be used this year. Whether it can depends on your tax situation, including the passive activity rules, and your CPA decides. What a passive activity is
What Usually Moves to Shorter Lives
The components a study itemizes in the shorter lives for this kind of building, and confirms on your property. The example above splits by class only.
Itemized in the 5 year class
- Electrical branch circuits and outlets dedicated to equipment
- Plumbing connections dedicated to equipment and appliances
- Low-voltage security, access-control and data cabling
- Carpet, vinyl and other removable floor coverings
- Decorative and accent lighting fixtures
- Miscellaneous removable finishes and accessories
Itemized in the 15 year class
- Pads, interior roads and utility distribution
- Parking lot paving, curbs and striping
- Site utility distribution and pad hookups
- Landscaping, shrubbery and planting beds
- Site drainage, storm structures and retention
- Fencing, gates and retaining walls
- Site and parking-lot lighting (poles, bases, circuits)
- Modern golf greens (constructed drainage and irrigation)
- Irrigation systems
- Cart paths
What moves your number
- Irrigation
- Cart paths
- Clubhouse share
The 5-year and 15-year split for this land improvement heavy property type is a SmartCostSeg house allocation with no source document behind it; the allocation between the 5-year and 15-year classes is pending field inventory and the class totals are provisional until an inventory of pads, roads, utility distribution and site improvements replaces it.
The Building and Its Rules
The wizard asks whether the greens are modern constructed greens or push up greens. The worked example does not apply the answer.
Start With Your Own Property
The wizard asks the questions for this property type and routes it to the right lane.