Adult day care cost segregation: $78K–$780K Year-1 deductions.

No, and the distinction is the whole point. An adult day center closes at night: nobody sleeps there, so it is nonresidential real property on the 39-year schedule. Assisted living, memory care and skilled nursing are residential-occupancy facilities and depreciate differently. It matters for the study too, because the fit-out is different — a day center has no resident rooms, which is where a senior living facility carries most of its furniture and finishes.

Typically to 5-year: nurse station and medication room casework, including locked med storage and the charting counter; nurse-call, monitoring and wander-management equipment; assisted bathing or spa tub equipment and the dedicated supply and tempering serving it; therapy and activity room equipment mounts, mirrors and dedicated circuits; the dining serving line casework and its warming and refrigeration connections; commercial kitchen equipment and its dedicated plumbing, gas and hood exhaust; dining and activity room carpet and removable resilient flooring; a salon or barber station where one is present; cameras and low-voltage cabling; decorative and accent lighting. To 15-year: the transport van loading zone and drop-off paving, bollards and striping, accessible parking, a secure outdoor courtyard with its walking path, garden beds and wander-secure fencing, site lighting, landscaping, sidewalks and the monument sign.

The shell and roof, interior partitions, comfort HVAC, sprinklers and the fire alarm, which is life safety and part of the building, the bathing room itself along with its floor drain and general plumbing, restrooms, and general lighting. The drop-off canopy structure is building too, even though the paving under it is a 15-year land improvement — a useful illustration of how the line gets drawn.

The building owner's. The landlord depreciates the building, the site work and whatever conveyed with the purchase. The operator depreciates its own equipment and any build-out the operator paid for, which is a leasehold improvement study on the operator's return. If you own both, you get both, and the intake asks what was included in the purchase so nothing is counted twice.

It usually helps, because a medical office already has the plumbing and electrical capacity a day health program needs, and because the conversion cost is generally documented. Documented costs are used in place of modeled ones wherever you have them, which makes the result both sharper and easier to support. A converted residence is the weaker form — small lot, no bathing room, no salon — and it sits at the floor of the band.

The address, the purchase price and closing date, square footage, year built, whether there is a nurse station, bathing room or salon, and whether equipment or furnishings were included in the purchase. A closing statement, a lease if the building is leased to an operator, and any build-out invoices sharpen the result. If the building was placed in service in a prior year, a Form 3115 lookback captures the missed depreciation in the current year.