Any commercial/investment real property placed into service since January 1st, 1987 may benefit from a Cost Segregation Study (CSS):

Critical timing is when the property was placed into service by the current owner / taxpayer, not when the building was originally constructed.


Qualifying Properties for Cost Segregation
  • New construction, including renovation, remodeling, restoration, or expansion to an existing building
  • Property acquired via purchase
  • Property acquired via inheritance
  • Property which received step-up in basis
  • Major leasehold improvements

Certain types of buildings benefit from a CSS more than others. Those are the types of buildings that tend to contain:


Qualifying Properties
  • More specialty plumbing, electrical, HVAC system, etc.
  • Higher amount and quality of personal property
  • Extensive land improvements

Range of average reclassification from real property to land improvements and personal property:


Qualifying Properties
Apartment Buildings 20 - 50%
Office Buildings 10 - 40%
Restaurants 10 - 40%
Hotels 15 - 40%
Light Manufacturing 15 - 40%
Heavy Manufacturing 25 - 70%
Grocery Stores 15 - 50%
Retail Facilities 15 - 40%
Warehouses 8 - 30%
Processing Plants 15 - 40%
R & D Facility 20 - 50%

Examples of Qualifying Properties:

» Airports
» Apartment Buildings
» Assisted Living Facilities
» Automobile Dealerships
» Bank Branches
» Casinos
» Cinemas
» Day Care Facilities
» Department Stores
» Distribution Centers
» Fitness Centers
» Food Processing Facilities
» Funeral Homes
» Gas Stations
» Golf Courses
» Grocery Stores
» Hospitals
» Hotels/Motels
» Industrial Facilities
» Laboratories
» Manufacturing Facilities
» Marinas
» Medical Centers
» Medical Facilities
» Mixed-Use Facilities
» Nursing Homes
» Office Buildings
» Parking Lots
» Pharmaceutical
» Physician Practices
» Public Utilities
» Research Facilities
» Retail Centers
» Resorts
» Restaurants
» Shopping Centers
» Sports Facilitie
» Storage Facilities
» Warehouses
Quality Cost Segregation

Our Cost Segregation Studies are conducted by accountants and engineers who specialize in engineering-based Cost Segregation Studies in accordance with the IRS Cost Segregation Audit Techniques Guide.


Quality Cost Segregation Group is a member of:

CCIM San Antonio / South Texas Chapter - Affiliate Member

Quality Cost Segregation Group, LLC

P.O. Box 160426
San Antonio, TX 78280
210.561.1200

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