Cost segregation case study CS-04
Renovated medical office condo
A cost segregation study on a renovated 1970 medical office condominium reclassified 48.0% of acquisition and renovation costs into 5-year property and 15-year qualified improvement property (QIP), producing about $48,000 of accelerated depreciation through 2025.
Property profile
- Property type
- Medical office condominium unit
- Region
- Northeast
- Year built
- 1970
- Building size
- ~1,100 SF
- Study type
- Acquisition + improvements
- Tax year
- 2020
Study outcome
- Total reclassified
- 48.0%
- 5-year property
- 34.2%
- 15-year property
- 13.8%
- Bonus rate
- 100%
- Accelerated depreciation
- ~$48,000 through 2025
The property
A medical office condominium unit, purchased and then renovated.
What we found
We started with the condominium's governing documents, which confirmed the owner held everything from the interior face of the perimeter walls, floor, and ceiling inward. That set the boundary of what could be studied. Built-in cabinetry in every exam room and the new flooring qualified as 5-year property, and most of the renovation qualified as 15-year qualified improvement property (QIP).