$1.5M Industrial: Your Cost Segregation Breakdown

Industrial properties have extensive site work — loading docks, truck courts, fencing, paving — that drives strong 15-year reclassification.

$326,250Accelerated Depreciation

$120,713Est. Year-1 Tax Savings

81xReturn on Study Cost

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Property Type

Purchase Price

$149,850

Estimated Year-1 Tax Savings

$326,250

Accelerated Deductions

$1,495

Study Cost

81x

ROI on Study

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Estimates are for illustration only. Details

MACRS Depreciation Breakdown

Accelerated Depreciation by MACRS Class

Total reclassified from standard depreciation

5-Year Property $135,000

12.0%

7-Year Property $33,750

3.0%

15-Year Property $157,500

14.0%

39-Year Property $798,750

71.0%

Estimated Year-1 Tax Savings $149,850

Illustrative estimate. Final allocations vary based on property facts and report findings.

Estimated deduction based on typical cost segregation allocations. Actual study results may vary based on property-specific analysis.

What This Means for You

A $1.5M industrial property is typically a 10,000-20,000 SF warehouse or flex space in markets like Memphis, Kansas City, or the Inland Empire. Industrial buildings are often underestimated for cost segregation potential.

The 15-year category is particularly strong for industrial: truck courts, loading dock equipment, heavy-duty fencing and gates, site paving, drainage systems, exterior lighting for security, and yard improvements. The 5-year category includes office buildout, specialized electrical, and compressed air systems.

At the 37% bracket, $326,250 in accelerated deductions generates $149,850 in year-one tax savings. The $1,495 study cost delivers an 81x return.

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Compare: Commercial Properties at Different Price Points

Price	Accelerated	Tax Savings	Study Cost	ROI
$1M Office	$217,500	$80,475	$1,495	54x
$1.5M Industrial	$326,250	$120,713	$1,495	81x
$2M Commercial	$435,000	$160,950	$2,995	54x

Frequently Asked Questions

What makes industrial properties good for cost segregation?▼

Extensive site improvements: truck courts, loading docks, heavy-duty paving, security fencing, yard lighting. These 15-year components often represent 12-15% of depreciable basis.

Does cost segregation work on a simple warehouse?▼

Yes. Even a basic warehouse has reclassifiable components: concrete truck court, parking lot, fencing, site lighting, HVAC, electrical panels, and any office buildout.

What is the study cost for a $1.5M industrial building?▼

The study costs $1,495 for commercial properties under $2M.