A real, redacted study, shown in full

Sample office cost segregation report

A real, redacted Cost Seg Smart commercial office property study, shown so you can see exactly what the deliverable contains and how the component allocation works. The numbers below come from one illustrative Austin, TX example.

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This Austin, TX study, by the numbers

One illustrative sample, not a benchmark

Depreciable basis

$1,368,000

Reclassified into 5/7/15-yr

19.4%

Accelerated basis

$265,617

Illustrative Year-1 deduction

$280,928

Inside the report: actual pages

Real pages from a office study (an illustrative Austin, TX subject property, figures redacted where needed). This is the actual deliverable, not a brochure mockup. Click any page to open it full size.

Office cost segregation report cover page example — Page 1: the subject property, a scaled parcel map, and the headline result for this illustrative Austin office building. Every report carries a verification ID and revision number.

Office cost segregation report engineering analysis summary example — The summary a CPA reads first: purchase price, non-depreciable land, total depreciable basis, and the accelerated reclassification total.

Office cost segregation report component allocation by asset class example — How the basis splits across 5-, 7-, 15-, and 39-year property. An office is shell-heavy, so the accelerated share is smaller and concentrated in cabling, finishes, and parking.

Office cost segregation report MACRS depreciation schedule example — Year-by-year MACRS deduction tables with 100% bonus applied, formatted to drop straight onto Form 4562.

Office cost segregation report IRS ATG methodology example — Each IRS Audit Techniques Guide (Pub 5653) quality element mapped to where the report addresses it, plus the allocation bridge from purchase price to MACRS classes.

Why office buildings are shell-heavy

This illustrative Austin office reached 19.4%, a lower share because most of the basis is structure. Offices concentrate their accelerated value in:

✓ Data and AV cabling
✓ Decorative finishes and millwork
✓ Casework and built-in fixtures
✓ Specialty and supplemental electrical
✓ Parking lots and site lighting
✓ Landscaping and hardscape

Office buildings are shell-heavy, so reclassification concentrates in low-voltage cabling, tenant finishes, and parking. A heavily built-out tenant suite reclassifies more than a plain shell.

Illustrative component allocation

Office buildings are shell-heavy; acceleration concentrates in low-voltage cabling, tenant finishes, and parking/landscaping. Below is how this one sample report split its $1,368,000 depreciable basis across MACRS classes (Section 3 of the deliverable lists every component line by line).

MACRS class	Allocated basis	% of basis
5-Year Personal Property Data/AV cabling, decorative finishes, casework, fixtures	$184,815	13.5%
7-Year Personal Property Furnishings and specialty equipment	$16,274	1.2%
15-Year Land Improvements Parking, landscaping, exterior lighting	$64,528	4.7%
39-Year Commercial Shell Structural building, envelope, base HVAC	$1,102,383	80.6%
Accelerated (5/7/15-year)	$265,617	19.4%

Where the depreciation comes from

5-Year Personal Property $184,815 · 13.5%

7-Year Personal Property $16,274 · 1.2%

15-Year Land Improvements $64,528 · 4.7%

39-Year Commercial Shell $1,102,383 · 80.6%

Accelerated (5/7/15-year) Building shell (39-year)

Illustrative result from one sample report. Actual reclassification varies substantially with property age, improvements, tenant finish, equipment, land value, and other facts. Not a benchmark or expected range. Tax-side figures assume the placed-in-service year's §168(k) bonus rate and an assumed entity rate; actual depends on entity structure, state conformity, passive-activity limits (§469), and at-risk basis (§465). Verify with your CPA before filing.

Why your result will differ from this example

No two office properties reclassify the same. The 19.4% above came from one specific building. Yours depends on:

→ Property age — newer buildings carry more reclassifiable finishes and systems.
→ Renovations and tenant improvements — recent build-outs add 5- and 7-year assets.
→ Equipment intensity — equipment-heavy uses (kitchens, service bays, medical) reclassify more.
→ Site work — extensive paving, parking, and landscaping drive the 15-year bucket.
→ Land value — a higher land share leaves less depreciable basis to reclassify.
→ Local construction costs and finish level — these shift each component's allocated basis.

That is why we model your specific property before you commit, and never apply a rule-of-thumb percentage. The IRS Cost Segregation Audit Techniques Guide (Pub 5653) warns against template and rule-of-thumb studies for exactly this reason.

Why CPAs file straight from these reports

Every office study delivers the same six-section structure, so your CPA can file without rework. Depth scales with property size and lookback complexity.

Section 1

Executive summary

2-3 pages

The one-page summary your CPA reads first: total reclassified, the Year-1 deduction, and the technical-review sign-off.

Section 2

Engineering methodology

3-5 pages

Shows why each asset was assigned its depreciation class, and documents the reasoning behind every allocation.

Section 3

Component allocation tables

8-15 pages

Every component (typically 40 to 80 line items) mapped to its asset class and MACRS life, with subtotals that reconcile to the depreciable basis.

Section 4

Depreciation schedules

3-6 pages

Year-by-year MACRS deduction tables, formatted to drop straight onto Form 4562, with bonus depreciation flagged for the placed-in-service year.

Section 5

Section 481(a) lookback workpaper

4-8 pages

For a Form 3115 catch-up: the cumulative Section 481(a) adjustment and a line-by-line reference for your tax preparer (when applicable).

Section 6

Documentation and audit support

4-8 pages

A cost-source citation for every component, the classification rationale, and a ready-made response pack for examiner questions. 36 months of support included.

How the report addresses IRS examiner standards

The IRS Cost Segregation Audit Techniques Guide (Pub 5653) lists the elements an examiner reviews, and the report maps to each one: the engineering methodology and component allocation document every classification, each component carries a Rev. Proc. 87-56 asset-class citation with its rationale, and the final section supplies a ready-made examiner-question response pack.

Every study includes 36 months of audit support at no additional charge. Full scope at /audit-defense/.

How this compares with traditional firms

	Cost Seg Smart	Traditional firms
Delivery	Same day to a few days	4 to 8 weeks
Price	From $495	$2,500 to $8,000+
Engineering methodology (Rev. Proc. 87-56, IRS ATG)	✓	✓
CPA-ready Form 4562 schedules	✓	✓
Form 3115 lookback support	✓	✓
36-month audit support	✓	Varies by firm
On-site visit required	No	Often

Traditional-firm figures are typical industry ranges; confirm pricing and scope directly with any vendor. For the full firm-by-firm breakdown see best cost segregation companies.

Report questions

Is this a real office cost segregation report?

The figures on this page are transcribed from a real, redacted Cost Seg Smart office study (an illustrative Austin, TX subject property). It is one example, shown to illustrate the deliverable and the kind of component allocation an office produces. Illustrative result from one sample report. Actual reclassification varies substantially with property age, improvements, tenant finish, equipment, land value, and other facts. Not a benchmark or expected range. You can request the full illustrative PDF for this property type by email.

What reclassification percentage should I expect for an office?

There is no single expected number. This illustrative sample reclassified 19.4% of depreciable basis, but your result depends on age, improvements, finish level, equipment, and land value. Office buildings are shell-heavy; acceleration concentrates in low-voltage cabling, tenant finishes, and parking/landscaping. We model your actual property before you commit; we never apply a rule-of-thumb percentage, which the IRS Audit Techniques Guide warns against.

Can I download the sample PDF?

Yes. A complete, illustrative full-length office sample report is available through the sample request form (one email, one PDF). It is clearly watermarked as an illustrative sample and is not a specific customer's report.

Does the report include Form 3115 for a lookback?

We provide the engineering workpapers and §481(a) computation that support a Form 3115 filing; your CPA prepares and files the Form 3115 itself. Form 3115 is automatic-consent for cost-seg method changes under Rev. Proc. 2015-13, so no IRS pre-approval is required. See our Form 3115 walkthrough.

How is this different from a benchmark or a percentage range?

A benchmark implies a promised outcome. This page shows one engineered result with its actual class-by-class allocation, transcribed from the deliverable. Illustrative result from one sample report. Actual reclassification varies substantially with property age, improvements, tenant finish, equipment, land value, and other facts. Not a benchmark or expected range.

See your office's real numbers, not a sample's.

We model your specific property before you pay. Order an engineered study or request the full illustrative office sample PDF first.

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