When you buy an office condo, you buy airspace — not land. The full purchase price is your depreciable basis. Every dollar qualifies for analysis.
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When you buy an office condominium, you are buying airspace — not land. The full purchase price is your depreciable basis.
This matters because in most commercial real estate, land value is excluded from the depreciable basis before the study begins. Land does not depreciate. In most markets, land allocation is 15–35% of value — meaning a significant portion of your purchase price produces no depreciation at all.
Office condos have no land allocation. Every dollar of your purchase price qualifies for depreciation analysis.
On a $1,500,000 office condo, the entire $1,500,000 is the depreciable basis. A fully engineered study typically finds $300,000–$450,000 in 5-year and 15-year property — delivering $110,000–$165,000 in Year 1 federal tax savings at a 37% rate. For medical professionals, attorneys, and accountants who own their office space, the fee-to-benefit ratio is among the strongest in commercial real estate.
These are the IRS-verified asset classes under Rev. Proc. 87-56 and supporting case law — confirmed across 16,000+ studies. Every component is documented to its correct recovery period with engineering justification, defensible under IRS examination.
Cost Seg America engineers office condominium cost segregation studies with one foundational advantage over all other commercial property types: no land allocation. The full purchase price is the depreciable basis. Our engineering team analyzes 100 cents of every dollar spent. The 5-year and 7-year personal property identified in an office condo study — lighting, security, access control, flooring — produces accelerated deductions against a depreciable basis that includes every dollar of the purchase price.
The IRS publishes a 347-page Audit Technique Guide on cost segregation. It identifies Approaches 1 and 2 as the preferred methodologies. Studies priced under $2,900 recover $60,000–$150,000 less per $1 million of depreciable basis than a fully engineered study. Cost Seg America has used IRS Approaches 1 and 2 on every study for 24 years. 125+ IRS audits. Zero losses. $0 ever returned. The methodology is why.
Cost segregation is an IRS-approved engineering analysis that reclassifies components of your office condo from the default 39 yr straight-line depreciation schedule to three shorter recovery periods: 5-year personal property, 7-year personal property, and 15-year land improvements. Office condos have no land allocation — the full purchase price is the depreciable basis, which makes the math more straightforward than most commercial property types.
With 100% bonus depreciation active under OBBBA for property placed in service after January 19, 2025, every qualifying component is fully deductible in Year 1. Cost Seg America consistently recovers $60,000–$150,000 more in deductions per $1 million of depreciable basis than studies priced under $2,900.
The typical reclassification rate for office condo is 20–30% of the depreciable basis. Because office condos have no land allocation, the depreciable basis equals the full purchase price. On a $1.5M office condo, this translates to approximately $138,750 in Year 1 federal income tax savings at a 37% rate.
The One Big Beautiful Budget Act (OBBBA) restored 100% bonus depreciation for qualified property placed in service after January 19, 2025. With 100% bonus depreciation, every qualifying 5-year, 7-year, and 15-year component identified in your study is fully deductible in the year you place the property in service. Your CPA determines your eligibility.
Yes. The IRS allows you to go back and claim deductions you never took using a Form 3115 change in accounting method — without amending previous returns. The catch-up deductions are taken entirely in the current tax year. Cost Seg America applies lookback analysis as standard practice. We partner with a trusted CPA specialist who handles the Form 3115 filing.
Cost Seg America's minimum qualifying property value is $200,000. Below this threshold, the engineering cost typically exceeds the tax benefit. Above $200,000, the fee-to-benefit ratio is consistently favorable and grows substantially with property value.
Unlimited audit defense means if the IRS examines your cost segregation study — this year, five years from now, or ten years from now — Cost Seg America responds. Written responses and phone representation. No time limit. No hour cap. No additional fee. Ever.
In 24+ years and 125+ IRS audits, Cost Seg America has never lost an audit and has never returned a dollar to the IRS.
Cost Seg America doesn't just find the deductions — we document them to survive the most demanding IRS examination.