CASE STUDY

Climate-Controlled Self Storage Facility

Daytona Beach, FL

Highlights

In 2023, a long-time client from Daytona Beach, Florida, expanded their portfolio with a newly constructed $11.8 million climate-controlled self-storage facility. To maximize the investment’s value from day one, the client turned to Cost Seg America—just as they have for years. Our team applied IRS Approach #1—the Detailed Engineering Approach using Actual Cost Records—to leverage 80% Bonus Depreciation and accelerate $4,031,096 into their first-year tax return. That unlocked over 13 times the straight‑line depreciation amount of $302,453.

By accelerating depreciation on more than 40% of the building’s components, we delivered substantial upfront tax savings—giving our client the flexibility to pursue new opportunities, strengthen their financial position, and move faster on future initiatives. With a track record of consistent results, Cost Seg America continues to be their trusted partner for long-term portfolio growth.

Statistics

$11,795,676

Construction Price

$302,453

First-Year Depreciation (Straight-Line)

$4,031,600

First-Year Depreciation (Cost Seg + 80% Bonus)

$4,703,096

Total Accelerated Depreciation

40%

Depreciation Accelerated

Approach

Cost Seg America used the IRS’s Approach 1 — the Detailed Engineering from Actual Cost Records outlined in the IRS Cost Segregation Audit Technique Guide — to accurately classify assets and maximize allowable depreciation.
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‍Breakdown of Reclassified Assets:

Comprehensive Data Collection – Our team gathers all relevant documents, including settlement statements, site plans, and architectural drawings, to create a complete asset profile.
On-Site Inspection – Our analysts conduct a detailed inspection to identify every critical component of the property.
Precise Asset Reclassification – Our team categorizes property components according to IRS guideline, ensuring compliance while accelerating depreciation schedules.
Optimized Depreciation Application – Our team's analysts apply MACRS to maximize tax deferrals and enhance cash flow.
Seamless CPA Collaboration – Our cost segregation report is delivered audit-ready, ensuring smooth integration into tax filings with full IRS defense.

With Cost Seg America, tax strategy is not just about compliance—it is about unlocking capital and fueling growth.
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💡 How This Property Was Reclassified

🟦 39-Year Property: $7,092,580 (60%)

🟩 15-Year Property: $3,361,778 (28.4%)

🟨 7-Year Property: $718 (0%)

🟥 5-Year Property: $1,340,600 (11.6%)

Breakdown of Reclassified Assets

39-Year Property (Building Structure)

Concrete foundation and slab, structural framing and load-bearing walls, roof system and insulation, fire-resistant corridor partitions, standard electrical and plumbing infrastructure.

15-Year Property (Land Improvements)

Paved access roads and drive aisles between units, stormwater drainage systems and detention areas, perimeter fencing and automated entry gates, pole-mounted exterior LED lighting, irrigation systems and landscaping, concrete curbs, sidewalks, and ADA-compliant ramps.

7-Year Property (Telecom & Special Equipment)

Network cabling and communication panels, telecommunications interface systems.

5-Year Property (Short-Life Assets)

Climate control systems (ductless mini-splits, interior HVAC units), keypad entry systems and interior motion sensors, electronic locking mechanisms on unit doors, office furniture and tenant-use equipment, interior lighting, security cameras, intercom systems, fire alarms, smoke detectors, and emergency lighting.

Summary

By applying IRS Approach #1—the Detailed Engineering Approach from Actual Cost Records—our team helped this client accelerate 40% of a $12 million property, unlocking over $4 million in first-year depreciation. That is more than 13 times what straight-line depreciation would have delivered—and it happened because the right strategy was used from the start.

But this project represents more than just numbers. It reflects what we stand for: lasting relationships, complete transparency, and delivering real results that move the needle. Our clients know we do not just run calculations—we produce audit-ready studies backed by integrity, precision, and a hands-on commitment that builds trust.

When you are investing millions, you do not need a vendor—you need a partner who understands the stakes, protects your vision, and fights for your bottom line. That is exactly what we deliver at Cost Seg America. Let us help you move forward with clarity, confidence, and the strongest tax position possible.

Complimentary Proposal