Cost segregation case study CS-08
Gas station acquired in 2024
A cost segregation study on a 2023 gas station and convenience store qualified it as a retail motor fuels outlet under asset class 57.1, moving 100% of the depreciable basis into 5- and 15-year property and producing about $1,369,000 of accelerated depreciation through 2025.
Property profile
- Property type
- Gas station with convenience store
- Region
- Northeast
- Year built
- 2023
- Building size
- ~2,600 SF
- Site size
- ~1.0 acre
- Study type
- Acquisition
- Tax year
- 2024
Study outcome
- Total reclassified
- 100%
- 5-year property
- 54.9%
- 15-year property
- 45.1%
- Bonus rate
- 60%
- Accelerated depreciation
- ~$1,369,000 through 2025
The property
A gas station and convenience store purchased in 2024, when bonus depreciation was 60% rather than 100%.
What we found
On any fuel station, our first step is testing whether it qualifies as a retail motor fuels outlet. Meeting one of three tests, based on fuel revenue, floor space, or building size, moves the building and site improvements into asset class 57.1 with a 15-year recovery period. This property qualified. With the fuel tanks, dispensing systems, walk-in cooler, and store fixtures in 5-year property, nothing remained in 39-year property, and the entire basis was eligible for bonus depreciation.