Sample restaurant cost segregation report

A real, redacted Cost Seg Smart restaurant / food service 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 Orlando, FL example.

Restaurants vary widely. A share this high reflects heavy kitchen equipment and a full specialty build-out; a lightly equipped space, or one bought as a shell, can land materially lower. Request the full sample PDF →

Inside the report: actual pages

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

The report itself

Engineering analysis summary

Allocation by asset class

MACRS depreciation schedules

IRS methodology, addressed

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.

Why restaurants often produce larger cost segregation studies

This illustrative Orlando restaurant reached 42.8% because it carries a full commercial kitchen and specialty build-out. Restaurants frequently contain:

• ✓ Commercial kitchen equipment, hoods, and ventilation
• ✓ Grease interceptors and specialty plumbing serving the kitchen
• ✓ Dedicated electrical for cooking, refrigeration, and equipment
• ✓ Walk-in coolers and freezers
• ✓ Decorative finishes, the bar, and serving areas
• ✓ Patio, exterior site lighting, and landscaping

These components create far more 5-, 7-, and 15-year property than a plain office or retail shell, which is why food-service studies often land among the higher reclassification ranges. Your result depends on how much of this your specific property actually has.

Illustrative component allocation

Restaurants carry exceptional 5-year share from kitchen equipment, specialty MEP serving it, and dining-area finishes. Below is how this one sample report split its $725,040 depreciable basis across MACRS classes (Section 3 of the deliverable lists every component line by line).

Where the depreciation comes from

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 restaurant properties reclassify the same. The 42.8% 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 restaurant study delivers the same six-section structure, so your CPA can file without rework. Depth scales with property size and lookback complexity.

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

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

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

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

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