What This Means for You
A $1M office building is common in secondary markets like Boise, Omaha, or Greenville — typically a 5,000-8,000 SF Class B office built in the 2000s with standard office finishes, parking lot, and professional landscaping.
Office buildings contain substantial 5-year personal property: built-in cabinetry, reception desks, break room equipment, window treatments, specialty lighting, and telecommunications infrastructure. The 15-year category includes parking lot paving, exterior signage, sidewalks, site lighting, and landscaping.
Because commercial properties default to 39-year straight-line depreciation, the acceleration effect is dramatic. The year-one deduction jumps from $19,231 to over $236K. At the 37% bracket, that is $108,225 in year-one tax savings against a $1,495 study cost.