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Medical Office Cost Segregation Case Study
Cost Segregation is a commonly used strategic tax planning tool that allows companies and individuals who have constructed, purchased, expanded or remodeled any kind of real estate to immediately reduce tax by accelerating depreciation deductions and deferring federal and state income taxes. The following is a case study for a medical office to demonstrate the benefits of accelerated depreciation on this property type.
What is Cost Segregation?
Cost Segregation is a commonly used strategic tax planning tool that allows companies and individuals who have constructed, purchased, expanded or remodeled any kind of real estate to increase cash flow by accelerating depreciation deductions and deferring federal and state income taxes.
Building Type: Office, Medical
| Summary of Benefits | Results |
|---|---|
| Additional Tax Deductions in First Year | $1,061,359 |
| Net Present Value (NPV) Over 10 Years | $307,710 |
| NPV Over Remaining Life of Property | $254,269 |
| *Benefits typical for tax returns filed 2018-2022 |
Building Allocation After Study

Building Information
| Purchase Price of Property (less land) | $3,580,000 |
| Property Type | Office - medical |
| Building Sq Ft | 15,000 |
| Entire Site Sq Ft | 46,500 |
| Date Acquired | July - Current Tax Year |
| Federal Tax Rate | 29.6% |
| State Tax Rate | 5% |
| Combined Tax Rate | 34.6% |
| ROI Factor | 8% |
| Bonus Depreciation | 100% |
Calculate Your Tax Savings
Use our Cost Segregation Savings Calculator to estimate tax savings for your type of building. Enter building details for instant results at kbkg.com/costsegregation/calculator.
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