CASE STUDY

Office Building

Venice, FL

Highlights

In 2022, a seasoned investment group acquired a 3-unit office building in Venice, Florida, adding it to their expanding national portfolio. With a building cost basis of $3,516,798, this group—well-versed in advanced tax strategies—made cost segregation a core part of their investment playbook.

Having already partnered with Cost Seg America on more than nine properties, they once again turned to a proven process. Our team applied IRS Approach #2—the Detailed Engineering Cost Estimate Approach—to uncover hidden value and maximize tax efficiency with precision.

The result? $1,649,069 in accelerated depreciation, made available in year one through 100% Bonus Depreciation. It is another example of how smart investors use cost segregation to fuel growth, boost cash flow, and stay several steps ahead.

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Statistics

$2,489,100

Cost Basis

$1,027,698

Improvements

$127,884

First-Year Depreciation (Straight-Line)

$1,716,986

First-Year Depreciation (Cost Seg + 100% Bonus)

$1,649,069

Total Accelerated Depreciation

47%

Depreciation Accelerated

‍Approach

Cost Seg America used the IRS’s Approach 2 — the Detailed Engineering Cost Estimate Approach outlined in the IRS Cost Segregation Audit Technique Guide — to accurately classify assets and maximize allowable depreciation. This is the highest-level approach available for purchased properties.

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: $1,867,730 (53%)

🟩 15-Year Property: $1,155,265 (32.8%)

🟨 7-Year Property: $12,269 (0.3%)

🟥 5-Year Property: $481,535 (13.7%)

Breakdown of Reclassified Assets

39-Year Property (Structure)

Building foundation and structural frame, Exterior walls and roofing systems, Elevators and stairwells, Standard electrical and plumbing infrastructure

15-Year Property (Land Improvements)

Asphalt parking lots and drive aisles, Concrete curbs, sidewalks, and ADA-compliant ramps, Exterior landscape lighting and bollard lights, Irrigation systems and planting areas

7-Year Property (Specialty Equipment)

Structured cabling and IT systems, Server racks and communication panels, Specialized telecom infrastructure

5-Year Property (Short-Life Assets)

Specialty lighting and fixtures, Custom office furniture, Security systems and tenant access controls, Interior signage and branding elements

Summary

By partnering with Cost Seg America, this client accelerated over $1.71 million in first-year depreciation—more than 13x what straight-line methods would have allowed. Our team applied IRS Approach #2—the Detailed Engineering Cost Estimate Approach—to reclassify 47% of the total cost basis, including improvements, into short-life assets. The result? Immediate cash flow and substantial tax savings right out of the gate.

Cost segregation is a strategy top-tier investors rely on to unlock capital, scale their portfolios, and reduce their tax burden. If you own commercial or residential rental property and haven’t done a study yet, now is the time. With audit-ready results and unmatched precision, Cost Seg America helps you move forward with confidence

At Cost Seg America, we’re here to help you protect what you have purchased, maximize what is possible, and move forward with confidence.

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