Wondering if Cost Segregation is worth it for your property? Click here to see your potential tax savings in under 1 minute with our free calculator

Why Cost Segregation for Medical and Dental Offices?

Front-Load Your Deductions

Reclassify building components from 39-years into 5, 7, and 15-year asset categories and start capturing larger deductions on your property sooner.

Keep More Capital Working for You

Accelerating deductions in your early ownership years reduces your taxable income sooner, freeing up capital to put back into your property and business.

What Qualifies

Examples of assets that can be accelerated include: medical equipment, treatment areas, waiting rooms, flooring, parking lots, specialized lighting, and more.

It’s Not Too Late to Start

Even if your medical or dental property has never had a cost segregation study, you can still recapture years of missed depreciation in a single tax year, no amended returns required.

Real Results from Medical and Dental Offices

This case study examines a Medical Office acquired in 2022 for $493,732 and applied in the 2023 tax year. By also leveraging 100% bonus depreciation, the cost segregation study reclassified eligible building components into shorter recovery periods, maximizing upfront tax savings resulting in $43,722 in savings.

Purchased price(less land)

$493,732

First-Year Tax Savings

$43,722

Date Placed In-Service

Jan. 2022

Tax Year Study Applied

2023

Bonus Depreciation

100%

Building Allocation After Study

5-Year

$73,072 Re-allocated

15-Year

$51,348 Re-allocated

39-Year

$369,311 Re-allocated

This case study examines a Dental Office acquired in 2020 for $1,506,900 and applied in the 2020 tax year. By also leveraging 100% bonus depreciation, the cost segregation study reclassified eligible building components into shorter recovery periods, maximizing upfront tax savings resulting in $236,373 in savings.

Purchased price(less land)

$1,506,900

First-Year Tax Savings

$884,277

Date Placed In-Service

July 2020

Tax Year Study Applied

2020

Bonus Depreciation

100%

Building Allocation After Study

5-Year

$411,381 Re-allocated

15-Year

$235,075 Re-allocated

39-Year

$860,435 Re-allocated

This case study examines a Medical Office acquired in 2024 for $1,920,000 and applied in the 2024 tax year. By also leveraging 60% bonus depreciation, the cost segregation study reclassified eligible building components into shorter recovery periods, maximizing upfront tax savings resulting in $117,778 in savings.

Purchased price(less land)

$1,920,000

First-Year Tax Savings

$117,778

Date Placed In-Service

June 2024

Tax Year Study Applied

2024

Bonus Depreciation

60%

Building Allocation After Study

5-Year

$301,440 Re-allocated

15-Year

$193,920 Re-allocated

39-Year

$1,424,640 Re-allocated

See Your Estimated Cost Seg Study Savings in Seconds

%
$

Estimated Tax Savings

Conservative Estimate

Accelerated Depreciation Deduction The total amount of depreciation deductions you would receive when using cost segregation, which reclassifies certain building components into shorter recovery periods for faster tax benefits.

Standard Straight-Line Depreciation Deduction The total amount of depreciation deductions you would receive under the standard straight-line method, typically spreading deductions evenly over 27.5 or 39 years for real property.

High-End Estimate

Accelerated Depreciation Deduction The total amount of depreciation deductions you would receive when using cost segregation, which reclassifies certain building components into shorter recovery periods for faster tax benefits..

Standard Straight-Line Depreciation Deduction The total amount of depreciation deductions you would receive under the standard straight-line method, typically spreading deductions evenly over 27.5 or 39 years for real property.

Your results show estimated first-year tax savings based on typical properties similar to yours. The Conservative Estimate shows what most property owners like you can expect at minimum, while the High-End Estimate shows what’s possible with a thorough professional analysis. These numbers represent actual cash you could save on taxes. For a personalized assessment that accounts for your property’s specific features, continue with our no-cost analysis request.

Download Estimated Savings Summary
Download Summary

How Does the Cost Segregation Study Process Work?

Preliminary Analysis

No-Cost Preliminary Analysis

Share your basic property details and we will put together a complimentary estimate of your potential tax savings along with a fixed project fee. No obligation to move forward.

Engineering Study

Detailed Engineering Analysis

Our engineers conduct a thorough on-site review of your facility, examining exam rooms, treatment areas, common spaces, mechanical systems, exterior improvements, and more to identify every qualifying component.

Implementation

Tax Savings Delivered

Our work concludes with a thorough, IRS-compliant engineering report documenting every reclassified asset. We then partner directly with your CPA to ensure accurate implementation and confirm your savings are reflected where they belong.

What Is Your Medical or Dental Office Really Worth on Your Tax Return?

Most medical and dental office owners are surprised by how many of their building components qualify for accelerated depreciation. Enter a few basic details and get a free estimate of your potential tax savings in minutes.

More Resources for Real Estate Owners

Frequently Asked Questions

How much does a cost segregation study cost and what’s the typical ROI?

The cost of a cost segregation study varies based on property type, size, and complexity; typically starting around $2,500+. To receive your personalized study cost estimate, you’ll need to complete our full no-cost analysis request. However, most clients see a return on investment of 5:1 to 20:1, meaning they typically save $5 to $20 in taxes for every $1 spent on the study.

How does the calculator show the difference between standard and accelerated depreciation?

The calculator displays “Standard Depreciation Tax Deductions” (your current method) versus “Enhanced Depreciation Tax Deductions” (with cost segregation), along with the “Additional Deductions Unlocked” and “Your Potential Tax Savings” to clearly show the financial benefit of accelerated depreciation.

How accurate is the estimate from the Cost Segregation Savings Calculator?

The calculator provides conservative and high-end estimates based on typical properties similar to yours. These estimates give you a general idea of potential savings, but for precise results tailored to your specific property’s unique characteristics, a professional cost segregation study is recommended.

Why should I use the Real Estate Cost Segregation Savings Calculator?

Using the calculator gives you a quick estimate of potential savings from cost segregation, showing both conservative and high-end scenarios. This helps you determine if a full professional study is worthwhile for your property investment before committing to the process.

What information do I need to use the Cost Segregation Savings Calculator?

You’ll need your property’s purchase price, federal tax rate (defaulted to 37%), month and year the property was placed in service, and the tax year you’re applying the benefits to. The more accurate your input, the more precise the savings estimate.

How can a Real Estate Cost Segregation Savings Calculator help my business?

The calculator helps you quickly assess how much you could save through cost segregation by showing the difference between standard depreciation and accelerated depreciation methods. This allows you to make informed decisions on maximizing tax benefits and improving cash flow for your real estate investments.

Does the calculator take into account bonus depreciation?

Yes, the calculator incorporates bonus depreciation benefits, which has been restored to 100% for qualifying assets. This means items like HVAC systems, lighting fixtures, electrical systems, flooring, cabinetry, and specialized equipment can be fully deducted in year one when combined with cost segregation, significantly increasing your immediate tax savings shown in the results.

What is a Cost Segregation Savings Calculator?

A Cost Segregation Savings Calculator helps property owners estimate potential tax savings by accelerating depreciation on property components. By inputting your purchase price, federal tax rate, and service dates, it provides both conservative and high-end savings estimates based on your property’s characteristics.

How do I calculate cost segregation​?

Calculating cost segregation involves breaking down a building’s total cost into individual components that qualify for accelerated depreciation. Instead of depreciating the entire property over 27.5 or 39 years, certain parts like carpeting, lighting, electrical systems, and land improvements can be depreciated over 5, 7, or 15 years, resulting in significant tax savings.

The process starts with a detailed engineering-based analysis. Experts examine construction costs, blueprints, invoices, and property details to identify assets eligible for shorter depreciation schedules. Each identified component is then assigned a specific recovery period under IRS guidelines.

The resulting study outlines the reallocation of costs into proper categories, providing a clear depreciation schedule that can be used to reduce taxable income in the early years of ownership.

CSSI specializes in conducting these studies accurately and efficiently. Our team uses a proven methodology to ensure IRS-compliant documentation and maximum benefit for each client.

866-757-6484