Medical / Dental Office
Medical office cost segregation: $60K–$220K Year-1 deductions.
Specialty MEP — exam-room plumbing, gas lines, lead-lined imaging walls, sterile water — pushes medical office reclassification well above general office.
Real examples
What medical office cost seg looks like in practice.
Scottsdale, AZ
Purchased $1.9M
Dental practice with chairside imaging
Year-1 federal benefit
$168,400
Charlotte, NC
Purchased $2.4M
Multi-physician primary care
Year-1 federal benefit
$208,800
Estimates assume 37% federal bracket and full first-year usability of the loss (active income offset or REPS). Your actual benefit varies with bracket, basis allocation, and CPA's treatment.
Good fit when…
- ✓Owner-operator physicians or dentists who built out the suite
- ✓Medical office buildings with significant specialty MEP
- ✓Practices with imaging suites, sterile-area plumbing, or specialty lighting
Skip it when…
- ×Vanilla shell space leased to a medical tenant where you didn't pay for the build-out
Estimate
Run the numbers on your medical office.
Pre-set to Medical office defaults — adjust price + bracket to match your property.
Estimated Year-1 tax savings
$47,175
on $127,500 of accelerated deductions
5-yr15-yr27.5/39-yr
Study cost
$995
ROI on study
47×
Delivery
< 1 hour
Estimate based on RSMeans 2024 cost data and IRC §168(k). Your actual result varies with property age, condition, and basis allocation.