Specialist · West Palm Beach, FL · Member since 2008 · 4k+ posts · 1k+ votes
One question that a lot of real estate owners have in regards to Cost Segregation Studies is the percentage of assets that are reclassified from a 27.5 or 39 year useful life into asset specific useful lives (typically 5-15 years). Below is a chart showing the average reclassification percentages by property type.
Apartment Building - 20-40%
Conference Center - 25-35%
Fitness Center - 22-45%
Assisted Living Facility - 22-45%
Golf Course - 28-60%
Theme Park - 16-22%
Grocery Store - 20-45%
Hospital - 28-40%
Auto-Car Dealership - 29-35%
Hotels - 20-40%
Research Facility - 22-45%
Manufacturing - 20-40%
Warehouse - 20-30%
Medical Office/Clinic - 22-35%
Resort - 25-45%
Mixed Use - 20-40%
Leasehold Improvements - 20-80%
Office Building - 20-30%
Retail Strip Mall - 18-40%
Winery - 18-25%
Restaurant - 20-80%
Bank - 30-45%
Are there any other types of properties you would like more information on?
@Lee Ripma The percentages can actually be higher than the estimates above with a quality, engineering-based study, the IRS' preferred methodology. The IRS has stepped up their hiring of top-notch, ready to show their stuff, graduates in accounting as new auditors. Depreciation schedules are targets. The last thing you, any busness person, or tax professional/CPA needs is an IRS agent on your doorstep looking for a way to earn their keep.
Would be happy to share any additional information I have with you @Lee Ripma. You definitely want a quality, engineering-based study as @Bonnie Griffin Kaake mentioned!