Office Building
Office cost segregation: $40K–$150K Year-1 deductions.
Office basis is mostly 39-yr structure, but tenant build-outs, specialty MEP, and parking lots produce significant 5/15-yr reclassification.
Real examples
What office cost seg looks like in practice.
Phoenix, AZ
Purchased $2.1M
Class B office, recent tenant build-out
Year-1 federal benefit
$142,000
Atlanta, GA
Purchased $1.4M
Suburban medical-adjacent office
Year-1 federal benefit
$98,400
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-operators or commercial investors with $1M+ basis
- ✓Buildings with specialty MEP (server rooms, medical, dental fit-outs)
- ✓Properties with significant parking lot, landscaping, fencing (15-yr land improvements)
Skip it when…
- ×Triple-net leased properties where the tenant owns the build-out
- ×Class C buildings in distressed markets — the engineered study won't recover much
Estimate
Run the numbers on your office.
Pre-set to 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.