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Restaurant Cost Segregation: Kitchen Equipment, Walk-Ins & Specialized Systems
Built on a calibrated, data-driven modeling engine — not generic templates. Engineering-based cost segregation with kitchen equipment and systems analysis, delivered in days.
How an Austin restaurant owner accelerated $369,600 in year-one deductions — backed by data, delivered fast.
Property4,800 SF — Austin, TX
Purchase Price$1,400,000
Year Built2017
Study TierCommercial ($1,495)
This investor elected our commercial cost segregation study. The study reclassified building components including commercial kitchen equipment, grease traps, walk-in coolers, hood ventilation, and specialized electrical — resulting in over $369,000 in first-year deductions beyond standard straight-line depreciation.
Total Accelerated (Year 1)
$369,600
beyond straight-line depreciation
$136,752
Est. Tax Impact (37%)
91x
ROI on Study Cost
33.0%
Basis Reclassified
8
Equipment Categories
What's in Your Study
Engineering-based analysis aligned with the IRS Cost Segregation Audit Techniques Guide.
Component-Level Analysis
Every building system classified by IRS asset life (5yr, 7yr, 15yr, 39yr)
MACRS Depreciation Schedules
Full schedules your CPA can use immediately — no additional formatting needed
Bonus Depreciation Modeling
100% bonus depreciation applied to accelerate first-year deductions
IRS ATG Compliance
Methodology aligned with the IRS Audit Techniques Guide for cost segregation
Separate schedule for commercial kitchen equipment, ventilation, and specialized systems
CPA-Ready PDF Report
Professional report delivered to your inbox in under 1 hour
Why Kitchen Equipment & Systems Matter for Restaurant Investors
Commercial kitchen equipment and specialized systems are the biggest missed depreciation opportunity for restaurant property owners.
Walk-in coolers, hood ventilation, grease traps, commercial ovens, specialized plumbing, and bar equipment are 5 and 7-year depreciable property — not part of the 39-year building. Restaurants have the highest reclassification rates of any commercial property type.
With bonus depreciation, eligible kitchen equipment and systems can be deducted in Year 1 — turning your restaurant build-out into immediate deductions.
Restaurants typically have $60K–$200K+ in kitchen equipment and specialized systems. Without cost segregation, those deductions are spread over 39 years instead of taken in Year 1.
Every study includes CPA-ready documentation prepared in accordance with IRS guidelines.
MOST POPULAR
Commercial
$1,495/study
Restaurants under $2M
Engineering-based cost segregation study
5-year + 15-year reclassification
Kitchen equipment & systems depreciation analysis
100% bonus depreciation modeling
MACRS schedules + NPV analysis
CPA-ready PDF report
Email support
Commercial Premium
$2,995/study
Restaurants $2M–$5M
Everything in the $1,495 tier
Enhanced component detail for higher-value properties
Expanded depreciation schedules
100% bonus depreciation modeling
MACRS schedules + NPV analysis
CPA-ready PDF report
Email support
Frequently Asked Questions
Cost segregation is an IRS-recognized depreciation method that reclassifies portions of your property into shorter depreciation categories (5, 7, and 15 years instead of 39). For restaurant owners, this means accelerating tens of thousands of dollars in deductions into the early years of ownership — reducing your taxable income significantly. Kitchen equipment, ventilation, and specialized systems are prime candidates for reclassification. Our restaurant cost segregation overview explains which components qualify.
Commercial kitchen equipment including ovens, fryers, grills, walk-in coolers and freezers, hood ventilation and fire suppression systems, grease traps, bar equipment and draft systems, POS systems, and specialized plumbing all qualify as 5-year property. Dining furniture and decor qualify as 7-year property, and outdoor seating and patio improvements qualify as 15-year property. All of these are separated from the 39-year building structure in a cost segregation study.
Yes. Restaurants typically see 22–32% of their depreciable basis reclassified into shorter-life categories. This is among the highest of any commercial property type because restaurants contain a large concentration of specialized equipment, ventilation systems, and dedicated electrical and plumbing — all of which qualify for accelerated depreciation.
Just the basics: property address, purchase price, square footage, and year built. Our intake form takes about 5 minutes. No site visit required. Photos and documents (closing statement, tax assessment) are optional but can improve accuracy.
Studies are delivered in under 1 hour as a CPA-ready PDF sent to your email. Your CPA can use it directly — no additional formatting needed.
Yes. If you didn't do cost segregation when you bought the property, you can file a Form 3115 (Change in Accounting Method) to catch up on missed depreciation — without amending prior returns. The full catch-up amount is taken in a single year.
Yes. Our methodology follows the IRS Cost Segregation Audit Techniques Guide. Each study includes component-level analysis, IRS asset class citations, and supporting engineering narratives. We recommend all clients work with their CPA when filing.
Restaurant MACRS Breakdown: Kitchen Infrastructure Drives the Highest Reclassification Rates
Restaurants typically achieve the highest cost segregation reclassification rates of any commercial property type. Commercial kitchen equipment, walk-in coolers/freezers, grease traps, exhaust hoods, and specialized plumbing all qualify for accelerated depreciation.
Foundation, structural frame, roof, exterior walls, main HVAC (non-kitchen), core electrical distribution, plumbing mains, fire suppression
Remainder
Full-service restaurants with extensive kitchen build-outs, walk-in refrigeration, and outdoor dining areas reclassify the most. QSR/fast-food properties with drive-through lanes gain additional 15-year reclassification from the drive-through infrastructure.
