Cost Segregation for
Medical and Dental Properties
By using cost segregation for medical and dental Properties, you’re freeing up income in the first few years of ownership, often when
investors are breaking even.
How a Cost Segregation Study Works for Medical and Dental Properties
How to Tell if Your Property Qualifies For A Cost Segregation Study
owners may qualify for a cost segregation study if they have done any of the following after 1985:
- Purchased a medical or dental property
- Renovated an existing property
- Expanded an existing property
- Planning a future 1031 exchange
- Constructed a new property
- Restored an existing property
- Paid for leasehold improvements
- Received a medical or dental property as a gift
The strongest candidates for a cost segregation study are owners who have spent over $1 million on the property or over $100,000 in improvements. If you fall into this category, the benefits will greatly outweigh the cost.
How Do You Benefit From a Cost Segregation Study for Your Medical or Dental Property?
By accelerating depreciation on certain building assets, owners of medical or dental properties can realize significant tax benefits many years sooner and maximize the value of their investments.
- Increased cash flow
- Substantial catch-up depreciation
- Secure IRS audit protection
- Verified depreciation schedules
- Large income tax deferrals
- Bonus depreciation qualifications
- Suite-by-suite cost breakdowns
- Peace of Mind Knowing Your Depreciation Method is Correct
How much could you save on your medical or dental property?
Enter your property's cost basis below to see your projected tax savings based on NCSS completed studies.
Projections are based on NCSS historical study data and assume a 37% federal tax rate. Individual results may vary.
What that includes
- ✓Ongoing IRS audit protection on every study, for life.
- ✓A custom-tailored, engineering-based cost segregation study from experts.
- ✓A guarantee of a minimum 5x return on your investment.
- ✓Free unlimited projections for life, any property, anywhere in the nation.
Does a cost segregation study for a medical or dental property change by state?
At National Cost Segregation Services, we are proud that our expertise serves every region of the U.S. A cost segregation study for medical or dental properties identifies assets that may be eligible for a shorter depreciation schedule under the IRS guidelines. A cost segregation study is based on federal tax law, which means it’s applicable in any state.
While the method of cost segregation is the same state by state, the result varies. Some states follow the exact federal depreciation rules, while others limit or adjust certain deductions. This means one medical or dental owner may see one result on their federal tax return and a different result on their state return.
Because National Cost Segregation Services works with medical or dental property across the country, our studies are designed to support the federal depreciation strategy while providing your CPA with the detailed information needed to evaluate any state-level adjustments.
Do you have a question about what a cost segregation study looks like in your state? Talk to our cost segregation experts, and get a free projection.
Industries that benefit from cost segregation
100% bonus depreciation is now permanent
The 2025 One Big Beautiful Bill Act permanently restored 100% bonus depreciation for qualifying property acquired after January 19, 2025. Components with a depreciable life of 20 years or less may now be written off entirely in year one, not just for a single tax year, but going forward.
Turn Specialized Buildout Costs Into Accelerated Tax Deductions
One of the strongest opportunities for a cost segregation study for medical and dental properties is identifying the specialized buildout costs that may not need to stay on the full 39-year depreciation schedule.
Medical and dental properties often include a mix of exam rooms, treatment areas, plumbing upgrades, electrical systems, cabinetry, specialty lighting, flooring, security systems, waiting areas, office space, and other property components that may qualify for shorter depreciation lives.
Depending on the asset, certain items may be moved into 5-year, 7-year, or 15-year property categories instead of being depreciated with the main building.
For medical and dental property owners, this matters because these spaces are often heavily customized for patient care, equipment use, sanitation, workflow, and compliance needs. A cost segregation study helps separate these costs so the depreciation schedule more accurately reflects the property.
With the help of a cost segregation expert, owners can generate significant deductions by analyzing purchase documents, construction budgets, contractor invoices, tenant improvement records, equipment installation costs, project timelines, and placed-in-service dates to determine which costs may be eligible for accelerated depreciation.
The Five Guarantees of Cost Segregation Excellence at National Cost Segregation Services
See what your property could save
Get a free projection from the nation’s leading cost segregation firm.