Cost segregation on a $3M Office Building reclassifies $427,500 into accelerated depreciation.
Engineering-based study using industry-standard 2026 construction cost data and IRS Audit Techniques Guide methodology. Numbers below are computed from the same formula our production studies use — adjust for your actual property with the calculator at the bottom.
How the $427,500 splits across 5-, 7-, and 15-year property.
These percentages are illustrative for a office building of this size and age. Your study reports component-level detail so your CPA can place each item on the correct depreciation schedule.
5-year property
Personal property: appliances, carpet, FF&E, decorative finishes. Fully bonus-eligible at 100% under OBBBA (2025+).
7-year property
Office furniture, certain equipment, specialty fixtures. Also bonus-eligible.
15-year property
Land improvements: driveways, fencing, landscaping, site lighting. Bonus-eligible.
Without a study vs. with one.
At a 37% federal bracket, that's $158,175 in cash you keep instead of paying — a 32× return on the $4,995 study. Run it on your actual property below.
The $3M office building at four federal brackets.
The headline figure assumes the top 37% bracket. Most owners are not in it, so here is the same $427,500 Year-1 deduction valued at other federal rates, before and after the $4,995 study fee. State income tax comes on top where your state conforms to federal bonus depreciation.
| Federal bracket | Year-1 tax value | After the $4,995 fee |
|---|---|---|
| 24% | $102,600 | $97,605 |
| 32% | $136,800 | $131,805 |
| 35% | $149,625 | $144,630 |
| 37% | $158,175 | $153,180 |
A $3M purchase price falls in the $3M–$5M band of our Standard Commercial pricing, a flat $4,995. At $5,000,000 and above the next band applies ($6,995). See the full pricing table.
Depreciation on a $2,250,000 basis, with and without the study.
The Year-1 reclassification of $427,500 equals about 7.4 years of standard 39-year depreciation on this property. After Year 1 the study's annual deduction is smaller, because the reclassified $427,500 has already been taken and only the $1,822,500 remaining building basis is still depreciating. Full years shown; the purchase year is shorter under the mid-month convention.
| Year | No study | With study | Cumulative extra deduction |
|---|---|---|---|
| Year 1 | $57,692 | $474,231 | $416,538 |
| Year 2 | $57,692 | $46,731 | $405,577 |
| Year 3 | $57,692 | $46,731 | $394,615 |
| Year 4 | $57,692 | $46,731 | $383,654 |
| Year 5 | $57,692 | $46,731 | $372,692 |
The cumulative gap narrows by $10,962 a year and closes over the recovery period; cost segregation changes when you deduct, not how much. Depreciation taken is generally recaptured on a taxable sale.
- $1M office: $142,500 reclassified on a $750,000 basis
- The office building cost segregation guide explains which components drive these numbers.
Your property is probably not exactly $3M.
Plug in your actual purchase price, property type, age, and finish level on the homepage calculator. It uses the same engine — no signup, results in 60 seconds.