The KBKG Partial Disposition Calculator is a powerful online tool that helps taxpayers and tax professionals quickly estimate the retirement loss deduction for building components that have been replaced, removed, or demolished. Designed with ease-of-use in mind, the calculator requires only basic inputs to determine a PPI-adjusted value—factoring in the component’s expected useful life, age, and quality at the time of acquisition.

This tool leverages the IRS-approved Producer Price Index (PPI) discounting method, allowing users to estimate a component’s depreciable tax basis without needing a full cost segregation study. While not as precise as a detailed engineering-based analysis, this method offers a practical alternative when time or resources are limited.

⚠️ Important Note: The PPI approach may overestimate the retirement deduction if used without proper context. Taxpayers may unlock valuable tax savings under the Tangible Property Regulations (TPRs) by accurately identifying and disposing of retired assets. For the most accurate results—especially for high-value properties or large-scale renovations—a formal cost segregation study is strongly recommended.

To learn more about the IRS’s guidance on this method, refer to T.D. 9689 – Dispositions of Tangible Depreciable Property