Dealerships have a mix of showroom space, service bays, offices, and outdoor lots. Studies often reclassify lighting, paving, lifts, HVAC, signage, and finishes.

Goal: Accelerate depreciation on both interior and extensive exterior components—significantly boosting first-year tax savings.

These properties include clubhouses, locker rooms, kitchens, restaurants, and large landscaped grounds.

• Cost segregation targets: Decorative finishes, outdoor lighting, irrigation, paths, and parking.
• Goal: Unlock deductions from a wide range of both interior and site-specific assets while ensuring IRS compliance.

These are often equipment-heavy and include custom infrastructure like reinforced flooring, ventilation systems, and electrical distribution.

Goal: Identify and reclassify building systems tied to production—such as conduits, power upgrades, HVAC, and air compression—leading to significant tax deferral and improved working capital.

Often heavily customized with cabinetry, plumbing, partitions, and specialized lighting or equipment hookups.

Goal: Reclassify these tenant-specific improvements for 5, 7, 15-year depreciation, resulting in accelerated deductions for private practitioners and medical building owners.

In these residential income-producing properties, cost segregation identifies short-life assets like flooring, lighting, appliances, parking areas, and landscaping.

Goal: Maximize early deductions for developers, syndicators, or owners by frontloading depreciation on tenant improvements and interior finishes.

Includes standalone stores, strip malls, or mixed-use retail spaces.

• Assets targeted: Display lighting, flooring, signage, custom wall finishes, and paved parking.
• Goal: Frontload depreciation for retail owners and developers through detailed classification of aesthetic and functional improvements.

Include kitchens, seating areas, restrooms, and sometimes outdoor dining.

• Common reclassified assets: Grease traps, ventilation hoods, HVAC, from the building decorative finishes, plumbing, and equipment-specific electrical.
• Goal: Increase early deductions and cash flow by separating out shorter-lived asset structures.

Typically include metal buildings, fencing, gates, lighting, office space, and paved drive paths.

• Reclassified elements: Asphalt, concrete, drainage systems, site lighting, and security systems.
• Goal: Maximize savings by accelerating depreciation on site improvements and non-structural systems.

Larger commercial properties with multiple tenants, common areas, and diverse layouts.

• Study focuses on: Signage, shared HVAC, common-area lighting, parking, and tenant buildouts.
• Goal: Break out shorter-lived assets across both tenant and shared spaces to optimize tax savings for developers or REITs.