Cost segregation case study CS-05
New-construction retail and warehouse on a large site
A cost segregation study on a 2024 new-construction retail, office, and warehouse building reclassified 61.3% of costs, and giving the site work its own earlier placed-in-service date moved several hundred thousand dollars into 2024 at 60% bonus depreciation instead of 40%.
Property profile
- Property type
- Retail, office, and warehouse
- Region
- Southeast
- Year built
- 2024
- Building size
- ~8,700 SF
- Site size
- ~21 acres
- Study type
- New construction
- Tax year
- 2024 site / 2025 building
Study outcome
- Total reclassified
- 61.3%
- 5-year property
- 2.4%
- 15-year property
- 58.9%
- Bonus rate
- 60% / 40%
- Accelerated depreciation
- ~$1,947,000 through 2025
The property
A new metal building on a large site: about 30% retail with a mezzanine for offices and training above it, and the rest unconditioned warehouse.
What we found
Most of the project cost was site work, including a large concrete yard, storm drainage, erosion control, and utilities. The construction ledger and contractor records showed the site improvements were placed in service about six months before the building's certificate of occupancy. Giving them their own in-service date moved several hundred thousand dollars into 2024, when bonus depreciation was 60% instead of 40%, and the owner amended that year's return to capture it.