Columbus, OH · $2.5M
15k SF commercial gym — strength + cardio + turf
Year-1 federal benefit
$143,000
Fitness Center / Gym
Gym cost segregation: $110K–$900K Year-1 deductions.
A gym is an inventory problem, not a building problem — cardio, strength, racks, free weights, rubber flooring, and mirrors are removable 5/7/15-year property, the densest commercial reclassification outside a restaurant.
The 30-second answer
Gym and fitness-center cost segregation is an engineering-based study that reclassifies a fitness facility's components out of the default 39-year commercial schedule into faster 5-, 7-, and 15-year MACRS classes. It fits owners and franchisees who bought, built, or built out a gym, because a fitness facility is unusually equipment-dense — cardio, strength, racks, and free weights are removable 5/7-year personal property, and the specialty athletic flooring and mirror systems are 5-year improvements. That matters because, with 100% bonus depreciation, the reclassified amount (about 18–28% of building basis on its own, and ~35% once documented equipment is added) is deductible in Year 1.
Gym cost segregation reclassifies 21–40% of depreciable basis from the 27.5- or 39-year shell into 5-, 7-, and 15-year MACRS classes per 26 U.S.C. § 168 and Rev. Proc. 87-56. Under OBBBA's permanent 100% bonus depreciation (placed-in-service 2025+), reclassified components are deductible in year one. All credible cost-seg providers use the same federal framework — public government construction cost data, MACRS classification, IRS Audit Techniques Guide (Pub 5653) compliance. What differs across property types is land-allocation share, FF&E weight, and material-participation eligibility under §469. For the general explanation, see what a cost segregation study is and what the report contains.
| Property type | Reclass to 5/7/15-yr | Year-1 federal benefit | Study cost |
|---|---|---|---|
| STR | 19–39% | $45K–$280K | From $495 |
| SFR | 8–32% | $16K–$165K | From $495 |
| Condo | 10–19% | $18K–$76K | From $495 |
| Brownstone | 5–20% | $60K–$640K | From $495 |
| Rowhouse | 5–18% | $10K–$170K | From $495 |
| Duplex | 8–21% | $19K–$105K | From $995 |
| Fourplex | 14–29% | $56K–$230K | From $995 |
| Office | 16–29% | $84K–$650K | From $995 |
| Retail | 20–37% | $90K–$690K | From $995 |
| Industrial | 15–28% | $78K–$840K | From $2,495 |
| Self-storage | 10–36% | $75K–$1.6M | From $2,495 |
| Medical office | 16–29% | $84K–$540K | From $2,995 |
| Mixed-use | 12–23% | $63K–$515K | From $995 |
| Multifamily | 14–28% | $44K–$200K | From $995 |
| Multifamily 5+ | 14–26% | $110K–$1.0M | From $1,995 |
| Triplex | 8–26% | $25K–$165K | From $995 |
| Restaurant | 16–29% | $72K–$430K | From $2,995 |
| Vet | 19–36% | $85K–$540K | From $2,995 |
| Gym this page | 21–40% | $110K–$900K | From $2,995 |
| Dealership | 25–47% | $465K–$4.2M | From $2,995 |
| ADU | 7–14% | $8K–$39K | From $495 |
| Commercial | 18–34% | $94K–$765K | From $995 |
| Data center | 43–65% | $2.5M–$29M | $4,995–$54,995 (sub-$100M); $100M+ by proposal |
| Senior living | 21–39% | $315K–$2.3M | By proposal |
| Funeral homes | 18–30% | $135K–$900K | By proposal |
| Child day care | 15–28% | $56K–$630K | From $2,995 |
| Adult day care | 14–26% | $78K–$780K | From $2,995 |
| Church | 10–22% | $37K–$825K | From $2,995 |
| Farm | 8–65%† | $19K–$780K | From $995 |
Reclassification ranges from the bands we publish per property type (measured on our delivered studies where we have enough of a type, modeled elsewhere); Year-1 federal benefit assumes 37% bracket and full first-year usability. Study costs are Cost Seg Smart pricing — comparable engineering studies elsewhere range $5,000–$15,000+. The ADU figure is an ADU acquired with a house; one the owner built or converted is priced on its documented construction cost, from $995. See full provider comparison.
† Farm: the figure is property with a recovery period of 20 years or less, on a farm with one or more rental houses on it. It counts 10- and 20-year property, which no other row has, and its dollar figure is a first-year deduction, not tax saved. A farm is quoted from a list of what is on it; see how.
Worked examples · modeled
What gym cost seg looks like in practice.
Illustrative, modeled properties, not client engagements. Estimates assume 37% federal bracket and full first-year usability of the loss (active income offset or REPS). Your actual benefit varies with bracket, basis allocation, and CPA's treatment.
Good fit when…
- ✓Owners who bought or built a gym and depreciate it over 39 years
- ✓Facilities with documented equipment — cardio, strength, racks, free weights (observed 5/7-yr)
- ✓Franchise / studio owners who funded a build-out (Orangetheory, F45, Club Pilates, CrossFit, yoga, spin)
Skip it when…
- ×Vanilla-shell leases where the landlord funded the entire build-out and you own no equipment
- ×Build-out or building basis under ~$400K, where the study fee gets thin against the benefit
Estimate
Run the numbers on your gym.
Pre-set to Gym defaults — adjust price + bracket to match your property.
Estimated Year-1 tax savings · Click to order →
$32,873
on $88,846 of accelerated deductions (Year 1, beyond straight-line)
typical $27,394–$50,679
Want this in writing for your CPA? Get a 1-page analysis →5-yr15-yr27.5/39-yr
Study cost
$1,495
ROI on study
22×
Delivery
1–2 business days
Your study includes more than the report.
- Engineering-based, property-specific analysis
- Direct coordination with your CPA
- Free revisions for 12 months; corrections of our errors always free
- Renovation analysis under $100,000 included
- Lifetime written audit support
- CPA-ready depreciation schedules and Excel fixed-asset file
Everything included in your study fee. Form 3115 preparation available separately.
Estimate based on public government construction cost data and IRC §168(k). Your actual result varies with property age, condition, and basis allocation.
Frequently asked
Gym cost segregation, by question.
Do gyms and fitness centers qualify for cost segregation?
Yes — and they're one of the densest commercial types. Equipment (cardio, strength, racks, free weights), specialty athletic flooring, and mirror systems are removable 5/7/15-year property. The building improvements alone reclassify ~18–28% of basis; documented equipment carves out materially more on top.
Why does the equipment inventory matter so much?
In a gym the equipment often rivals the building. We book documented equipment as observed 5/7-year property and carve it from the basis first, then model improvements on the rest. On a $2.5M facility the building reclassifies ~19%, but adding a documented ~$310K equipment schedule pushes the total to ~35%.
How much does a gym cost segregation study cost?
Fitness centers are priced on the specialty-commercial ladder: from $2,995 for sub-$1M basis, $4,995 for a typical $1M–$3M facility, delivered CPA-ready in 1–2 business days. Remote for most residential properties.
I run a franchise / studio in leased space — does it apply?
Yes. Franchise and studio build-outs (Orangetheory, F45, Club Pilates, CrossFit, yoga) are heavy, branded tenant improvements — flooring, mirrors, AV, finishes — that you funded and depreciate. The study runs on your build-out basis.
Regulation references
The rules that govern gym cost segregation.
- Cost Segregation for Gyms & Fitness Centers: 2026 Guide with Real Numbers — our in-depth guide to gym cost segregation.
- Real estate professional status (REPS) — the 750-hour and 51% tests under 26 U.S.C. § 469(c)(7), and the seven material participation tests under Treas. Reg. § 1.469-5T. Required to offset W-2 income with long-term rental losses unless the property qualifies under the STR loophole.
- Form 3115 (catch-up depreciation) — how to apply cost segregation to a property placed in service in a prior year. Full § 481(a) catch-up adjustment, automatic change-number 7, no IRS user fee.
- Treas. Reg. § 1.469-1T — full reference — all six (A)–(F) exceptions that reclassify a rental as non-rental for passive activity loss purposes.
- Regulations hub — full canonical reference for all cost segregation regulations.
- irsdepreciationrules.com — companion plain-language reference for the underlying IRS depreciation statutes (operated by Cost Seg Smart).
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