Commercial Cost Segregation

Unlock six figures of depreciation on your commercial building.

Engineering-based cost segregation studies for commercial and 5+ unit residential properties nationwide. Fixed fees, in-house team, IRS-compliant reports — from a firm with a real office and real people.

Building types we study

Every commercial property benefits — some more than others

Multifamily · 5+ units

Apartment complexes and 5+ unit residential — commercial tax treatment, strong reclassification.

Office

Class A, B, and C office buildings, medical office, professional buildings.

Retail & restaurants

Strip centers, standalone retail, quick-service and full-service restaurants.

Industrial & warehouse

Manufacturing, distribution, flex space, cold storage, self-storage facilities.

Hospitality

Hotels, motels, resorts, extended-stay — typically the highest reclassification percentages.

Medical & dental

Specialty electrical, plumbing, and finishes drive strong short-life allocations.

Add Audit Support — $300

Highly recommended

If it's ever questioned, the deduction survives on documentation — the engineering methodology, the asset-by-asset breakdown, the source records, and a clear written answer to the examiner's letter. Without that, the reclassification can be disallowed even when it was correct.

  • Full methodology narrative on demand
  • Written responses to IRS information requests
  • Direct IRS correspondence when we represent you
  • Coordination with your own tax pro
  • Re-verification against the ATG
  • No hourly meter, life of the study
What Audit Support covers in full
Sample report

A real commercial cost segregation report

Redacted example of a full commercial deliverable. Preview in-browser or download the PDF — no lead form.

Modern glass commercial office building at blue hour
Sample Report · Commercial

Commercial building cost segregation study

A redacted example of the exact deliverable you'll receive — engineering-based, IRS-compliant, and ready for your CPA.

  • Executive summary with headline first-year savings
  • Full asset detail: 5-, 7-, 15-, and 39-year reclassifications
  • Engineering methodology + site documentation
  • Depreciation schedules and Form 3115 support (look-back)
Step 01 · Get started

Download your commercial questionnaire

Pick the form that best matches your property type, fill it out in Excel, and email it back. That kicks off your study.

Commercial · 5+ units & non-residential

Multifamily 5+, office, retail, industrial, hospitality, medical, and specialty.

17 forms

Apartments (5+ units)

Apartment complexes and 5+ unit residential buildings.

Office Building

Class A, B, or C standalone office buildings.

Office Condo

Individually-owned commercial office condominium units.

Retail

Strip centers, standalone retail, and small retail buildings.

Retail Pharmacy

Standalone pharmacy retail buildings.

Retail Condo

Individually-owned retail condominium units.

Restaurant

Quick-service and full-service restaurant buildings.

Warehouse

Distribution, flex space, cold storage, and industrial warehouse.

Storage Facility

Self-storage and mini-storage facilities.

Nursing Home

Skilled nursing, assisted living, and long-term care facilities.

Hotel / Motel

Hotels, motels, resorts, and extended-stay properties.

Dental / Medical / Veterinary

Specialty medical, dental, and veterinary office buildings.

Daycare

Child-care and daycare facility buildings.

Bank

Standalone bank branch buildings.

Auto Service

Auto repair, service centers, and car-wash facilities.

Animal Grooming Facility

Pet grooming, boarding, and animal care facilities.

Mixed-Use

Buildings combining residential, retail, or office uses.

Improvements & New Construction

Leasehold improvements, major renovations, and ground-up builds.

2 forms

Client Improvements

Leasehold or tenant improvements to an existing building.

Client Improvements or New Construction

Ground-up construction, major renovations, or large additions.

Not sure which one? Email us the property type at cory@marlowaccounting.com and we'll send the right form.
What the study finds

Where the accelerated deductions come from

Commercial buildings are depreciated over 39 years by default. That's a slow drip. A properly-scoped cost segregation study typically reclassifies 15–40% of the depreciable basis into 5-, 7-, and 15-year categories — hospitality and specialty-use properties skew toward the top of that range.

Short-life property in a commercial context includes decorative finishes, dedicated process electrical, specialty plumbing, decorative millwork, movable partitions, kitchen equipment build-outs, medical/dental infrastructure, security and specialty low-voltage systems, and much more. Land improvements — parking lots, sitework, fencing, exterior lighting, landscaping — sit at 15 years.

For a look-back study on a property placed in service in a prior year, we prepare the Form 3115 supporting documentation. Missed depreciation flows through as a single current-year catch-up — no amended returns.

Checklist

What we need from you

Closing statement or AIA / construction docs

Purchase settlement statement, or AIA G702/G703 and pay-app history for new construction.

Blueprints / as-builts

Architectural, structural, MEP drawings if available. Not required — we can work with photos.

Rent roll (multifamily) or lease abstracts

Helpful for classifying tenant-specific improvements.

Placed-in-service date + prior depreciation schedule

For look-back studies, we need the last CPA-prepared depreciation schedule.

FAQ

Commercial cost seg questions

Smaller property? See residential (1–4 units).

Ready to run the numbers on your building?

Send us the closing statement or construction docs. We'll deliver a fixed-fee quote within one business day, anywhere in the U.S.