A real, redacted study, shown in full

Sample warehouse cost segregation report

A real, redacted Cost Seg Smart warehouse / distribution 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 Dallas, TX example.

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This Dallas, TX study, by the numbers

One illustrative sample, not a benchmark

Depreciable basis

$5,248,000

Reclassified into 5/7/15-yr

23.1%

Accelerated basis

$1,210,895

Illustrative Year-1 deduction

$1,266,966

Inside the report: actual pages

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

Warehouse cost segregation report cover page example — Page 1: the subject property, a scaled parcel map, and the headline result for this illustrative Dallas distribution warehouse. Every report carries a verification ID and revision number.

Warehouse 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.

Warehouse cost segregation report component allocation by asset class example — How the basis splits across 5-, 15-, and 39-year property. For a warehouse, the 15-year site-work bucket (truck courts, paving, yard lighting) does most of the work.

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

Warehouse 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 warehouses lean on 15-year site work

This illustrative Dallas distribution warehouse reached 23.1%, and most of it came from the yard, not the building. Distribution facilities frequently contain:

✓ Truck courts and heavy-duty paving
✓ Yard and dock lighting
✓ Perimeter fencing and security gates
✓ Dock levelers and dock equipment
✓ Specialty electrical serving equipment
✓ An office build-out within the warehouse

Warehouses are shell-heavy buildings, so the 15-year site-work bucket usually drives the result more than 5-year personal property. A warehouse on a small lot with little paving reclassifies less.

Illustrative component allocation

Distribution warehouses are driven by a large 15-year site-work bucket (truck courts, paving, yard lighting) more than 5-year personal property. Below is how this one sample report split its $5,248,000 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 Dock equipment, specialty electrical, fixtures	$280,453	5.3%
15-Year Land Improvements Truck courts, paving, yard lighting, fencing	$930,442	17.7%
39-Year Commercial Shell Structural building, envelope, base systems	$4,037,105	76.9%
Accelerated (5/7/15-year)	$1,210,895	23.1%

Where the depreciation comes from

5-Year Personal Property $280,453 · 5.3%

15-Year Land Improvements $930,442 · 17.7%

39-Year Commercial Shell $4,037,105 · 76.9%

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 warehouse properties reclassify the same. The 23.1% 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 warehouse 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 warehouse cost segregation report?

The figures on this page are transcribed from a real, redacted Cost Seg Smart warehouse study (an illustrative Dallas, TX subject property). It is one example, shown to illustrate the deliverable and the kind of component allocation a warehouse 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 a warehouse?

There is no single expected number. This illustrative sample reclassified 23.1% of depreciable basis, but your result depends on age, improvements, finish level, equipment, and land value. Distribution warehouses are driven by a large 15-year site-work bucket (truck courts, paving, yard lighting) more than 5-year personal property. 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 warehouse 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 warehouse's real numbers, not a sample's.

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

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