cost segregation services
cost segregation services
cost segregation services

Cost Segregation for
Office Buildings

By using cost segregation for office buildings, you’re freeing
up income in the first few years of ownership, often when
investors are breaking even.

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How a Cost Segregation Study Works for Office Buildings

Using a Cost Segregation Study for office building properties allows owners to free up income earlier in their depreciation schedule.
With a cost segregation study, owners can depreciate certain assets in their office building more quickly than the typical 39-year straight-line method.
Some assets eligible for cost segregation include interior finishes, cabinetry, flooring, decorative lighting, specialty electrical, signage, parking, landscaping, and tenant improvement buildouts. Any asset that does not compromise the structural integrity of the office building can be fully depreciated over 5, 7, or 15 years.
Standard: 27.5–39 yrs
Cost seg: 5 · 7 · 15 yrs

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How to Tell if Your Property Qualifies For A Cost Segregation Study

Office building owners may qualify for a cost segregation study if they have done any of the following after 1985:

  • Purchased an office building
  • Renovated an existing property
  • Expanded an existing property
  • Planning a future 1031 exchange
  • Constructed a office building
  • Restored an existing property
  • Paid for leasehold improvements
  • Inherited or received a 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.

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How Do You Benefit From a Cost Segregation Study for Your Office Building?

By accelerating depreciation on certain building assets, owners of office 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
Cost Segregation Calculator

How much could you save on your office building?

Enter your property's cost basis below to see your projected tax savings based on NCSS completed studies.

Estimate your projected savings
Cost basis$5,000,000
$500K$50M
Total projected tax savings
$192,400

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.
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Does a cost segregation study for office 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 office buildings 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 office building 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 office building property owners 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.

Can My CPA Do a Cost Segregation Study For Me?

A proper cost segregation study is a complex combination of tax law and engineering principles. Most accounting firms do not specialize in this area. This is exactly why our firm works so closely with your tax advisor to make the final application of a study a turnkey solution for you, the taxpayer. Our firm is approved by the IRS to perform cost segregation studies nationwide. Our approach is engineer-based, yielding the greatest tax benefits available to bank property owners. A completed Cost Segregation Study does not replace the important role an accountant plays in preparing tax documentation or determining tax liability, but adds to your comprehensive tax plan.

Industries that benefit from cost segregation

Short Term Vacation Rental
Drug stores
Child Care Centers
Mobile home parks
Golf courses
Banks
Self-storage
Industrial / warehouse
Office buildings
Medical & dental
Restaurants
Hotels & motels
Multifamily

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.

Cost Segregation Across Every Tenant Buildout

Every time a new tenant moves in, an owner may invest in new flooring, lighting, glass partitions, conference rooms, a kitchen, and other improvements that make the tenant space usable for a specific business.
A cost segregation study can be particularly valuable in multi-tenant office buildings, where assets are repeated across multiple units. The assets in each unit may be eligible for a cost segregation study and a different depreciation schedule than the straight-line 39 years. 
If the owner does not do a cost segregation study, many of these assets may get grouped into the building depreciation. Meaning they don’t get fully depreciated until 39 years, as opposed to 5, 7, or 15 years.
A cost segregation study frees up income for the owners, which can help with expensive tenant improvements, renovations, property upgrades, leasing costs, and maximizing that year’s return.
Interested in learning what building assets are eligible for a cost segregation study? Get a free projection with one of our cost segregation experts today.
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The Five Guarantees of Cost Segregation Excellence at National Cost Segregation Services

  • We guarantee ongoing IRS audit protection on every study for life. If an IRS fine is issued due to any negligence on our part, we will pay the fine and give you $ 1,000.
  • We guarantee a quintuple return (5x) or more on your cost segregation study investment.
  • We guarantee a custom-tailored cost segregation study on your office building. Our engineering-based study will be tailored exactly to your commercial property. No ‘cookie-cutter’ approach.
  •  We guarantee free unlimited projections for life. Any property in the nation.
  • We guarantee your Overall Satisfaction at the conclusion of your study, or we will make it right.

See what your property could save

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