Case Study

Medical Office Builing

Medical Office Builing

Our analysis successfully isolated high-value clinical components, mechanical infrastructure, and tenant improvements, maximizing immediate tax savings and accelerating cash flow.

Our analysis successfully isolated high-value clinical components, mechanical infrastructure, and tenant improvements, maximizing immediate tax savings and accelerating cash flow.

About

Optimizing Clinical Assets for Accelerated Recovery

Medical real estate requires a highly technical approach due to the heavy concentration of specialized facility infrastructure. Our study dissected the property's advanced mechanical, electrical, and plumbing (MEP) systems, accurately separating clinical-use assets from the core building structure to unlock substantial near-term depreciation. This increased cashflow by $89k for the owner and reclassified 22% of the 39 year depreciation category.

Scope

Summary & Impact

Maximizing Medical Real Estate Yield

By isolating high-value specialty plumbing, surgical lighting distributions, and clinical finish materials from the structural shell, the study successfully shifted a significant portion of the building's cost into accelerated recovery periods. This engineering-based allocation drastically optimized the asset's near-term financial performance while maintaining complete, audit-ready compliance.

Our Approach

Step 1

Step 2

Step 3

Summary & Impact

Delivering an Immediate 22% Acceleration

By isolating high-value specialty plumbing, mechanical upgrades, and clinical finishes from the core structure, the study successfully shifted a significant portion of the building's cost into accelerated recovery periods. This engineering-based allocation drastically optimized the asset's near-term cash flow while maintaining complete, audit-ready compliance.

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What Is Cost Seg

When you acquire, construct, or renovate a commercial property, the IRS requires you to depreciate the entire structure over 39 years (or 27.5 years for residential rental). But not every component of a building is structural. Electrical systems, specialized flooring, land improvements, certain HVAC components, and dozens of other elements can legally be reclassified as personal property that's depreciable over 5, 7, or 15 years instead.

A cost segregation study identifies and documents those components, accelerating your depreciation deductions and delivering real, front-loaded tax savings.

Who Benefits

Cost segregation delivers the most value to:

  • Commercial property owners who have purchased, constructed, or substantially renovated a property

  • Real estate investors seeking to offset passive income

  • Business owners who own the building from which they operate

  • Property owners who have never had a study done on a building they've held for years (a "look-back" study can recapture missed deductions without amending prior returns)

What Is Cost Seg

When you acquire, construct, or renovate a commercial property, the IRS requires you to depreciate the entire structure over 39 years (or 27.5 years for residential rental). But not every component of a building is structural. Electrical systems, specialized flooring, land improvements, certain HVAC components, and dozens of other elements can legally be reclassified as personal property that's depreciable over 5, 7, or 15 years instead.

A cost segregation study identifies and documents those components, accelerating your depreciation deductions and delivering real, front-loaded tax savings.

Who Benefits

Cost segregation delivers the most value to:

  • Commercial property owners who have purchased, constructed, or substantially renovated a property

  • Real estate investors seeking to offset passive income

  • Business owners who own the building from which they operate

  • Property owners who have never had a study done on a building they've held for years (a "look-back" study can recapture missed deductions without amending prior returns)

What Is Cost Seg

When you acquire, construct, or renovate a commercial property, the IRS requires you to depreciate the entire structure over 39 years (or 27.5 years for residential rental). But not every component of a building is structural. Electrical systems, specialized flooring, land improvements, certain HVAC components, and dozens of other elements can legally be reclassified as personal property that’s depreciable over 5, 7, or 15 years instead.

A cost segregation study identifies and documents those components, accelerating your depreciation deductions and delivering real, front-loaded tax savings.

Who Benefits?

Cost segregation delivers the most value to:

  • Commercial property owners who have purchased, constructed, or substantially renovated a property

  • Real estate investors seeking to offset passive income

  • Business owners who own the building from which they operate

  • Property owners who have never had a study done on a building they’ve held for years (a “look-back” study can recapture missed deductions without amending prior returns)

Connect With Us

bcharleson [at] costsegstrategies [dot] com

For bot deterrance. Please replace [at] with @ and [dot] with .com

Connect With Us


bcharleson [at] costsegstrategies [dot] com

For bot deterrance. Please replace [at] with @ and [com] with .com


Connect With Us

bcharleson [at] costsegstrategies [dot] com

For bot deterrance. Please replace [at] with @ and [dot] with .com