Showroom finishes, sales offices and customer amenities
CALIFORNIA AUTO DEALERSHIP OWNERS
Reviewed August 20, 2026 · Updated for current federal bonus-depreciation guidance
The showroom, service bays and vehicle lot do not work the same way.
New- and used-vehicle dealerships combine showrooms, sales offices, service and detail bays, body-shop areas, customer amenities, signage and large paved inventory lots. A cost segregation study documents how each area functions and reconciles real-estate basis with equipment already scheduled separately.
- ✓ No study work before payment
- ✓ CPA-ready final report
- ✓ California statewide
WHY IT MATTERS
Move eligible basis into faster recovery periods.
Dealership studies require disciplined ownership records. Lifts, compressors, diagnostic systems, wash equipment, furniture and signage may already appear on the fixed-asset schedule, while general building electrical, plumbing and HVAC normally remain building property. Dedicated connections, service-bay finishes, parking, lighting and later franchise-image renovations must be traced to actual invoices and placed-in-service dates.
Plain English: you are not creating a new deduction. You are identifying when supported pieces of the property may be depreciated.
WHAT WE REVIEW
Auto dealership components and records to organize
Service bays, body-shop and detail-area improvements
Vehicle lifts, compressors and equipment schedules
Dedicated electrical, plumbing and air connections
Inventory lots, curbs, drainage, lighting and fencing
Pylon signs, franchise renovations and later capital projects
SHOW ME THE NUMBERS
Illustrative California dealership example
Illustrative only. This assumes a 37% federal marginal rate where shown and that the owner can currently use the deduction.
- Property value
- $12,000,000
- Estimated depreciable basis
- $9,000,000
- Potential faster basis
- $2,250,000 to $3,150,000
- Potential upfront federal effect
- $833,000 to $1,166,000
- Study or comparison benchmark
- $15,000 to $30,000+
This is a timing illustration, not guaranteed permanent tax savings. California commonly requires a separate depreciation schedule because it generally does not conform to federal bonus depreciation.
DOES IT FIT?
Strong candidates usually have four things.
✓
Owner-depreciated dealership real estate or improvements
✓
Land, building and equipment basis are separated
✓
Recent acquisition, construction or franchise renovation
✓
Fixed-asset records prevent duplicate classification
PORTFOLIO PRICING
More properties. Lower cost per study.
Order and pay for the properties together to receive a simple portfolio discount.
2 properties5% off3 to 4 properties10% off5+ properties15% off
STRAIGHT ANSWERS
Frequently asked questions.
Does all service-bay equipment belong in the real-estate study?+
No. Equipment already purchased and depreciated separately must not be duplicated. The study reconciles the real-estate basis and evaluates supported building components, land improvements and dedicated connections.
Can a franchise-image renovation receive its own study?+
Potentially. A separately placed-in-service renovation can be analyzed using supported project costs, but removed components, repair deductions, tenant or manufacturer contributions and separately scheduled equipment must be reconciled.
Are vehicle lots automatically 15-year property?+
No. Some supported paving, drainage, lighting, fencing and signage may qualify for shorter recovery, but the function and relationship to the building must be documented. Land itself is never depreciable.
Is the free estimate a completed study?+
No. It is an illustrative screen using the facts you provide. No engineering takeoff, professional certification or tax opinion is included. Technical work begins only after a signed and paid engagement.
Does my CPA need to approve the study first?+
No. It is smart to ask whether you can currently use additional depreciation, but the paid study does not require advance CPA approval. Your CPA makes the final filing decision.
Do you guarantee tax savings?+
No. A study accelerates the timing of eligible depreciation. Results depend on basis, property facts, placed-in-service dates, passive-loss rules, tax rates and the owner's filing position.
AUTHORITATIVE SOURCES
Reviewed against current IRS and California guidance.
Last reviewed August 20, 2026. Tax rules and procedures can change. Your CPA should confirm the law that applies to your acquisition date, placed-in-service date and return.
FREE PRELIMINARY PROPERTY SCREEN