Classroom casework, cubbies and removable fixtures
CALIFORNIA CHILDCARE PROPERTY OWNERS
Reviewed September 1, 2026 · Updated for current federal bonus-depreciation guidance
Childcare facilities invest heavily in specialized rooms and outdoor space.
California daycare, preschool and childcare properties can include age-specific classrooms, built-in and removable casework, food-service areas, laundry, security, playgrounds, shade structures, fencing, resilient surfaces and parent drop-off improvements. A study should separate business equipment from landlord or operator improvement basis before classifying costs.
- ✓ No study work before payment
- ✓ CPA-ready final report
- ✓ California statewide
WHY IT MATTERS
Move eligible basis into faster recovery periods.
A licensing or safety requirement does not by itself determine federal recovery treatment. General building structure, plumbing, HVAC, electrical and life-safety systems normally remain building property, while function-specific equipment, finishes and exterior improvements require documented analysis. Lease terms and public or grant funding may also affect who owns and depreciates the work.
Plain English: you are not creating a new deduction. You are identifying when supported pieces of the property may be depreciated.
WHAT WE REVIEW
Childcare property components and records to review
Playgrounds, resilient surfacing, shade and outdoor equipment
Fencing, gates, access control and security
Kitchen, laundry and age-specific support areas
Specialty plumbing, electrical and equipment connections
Drop-off paving, walks, landscaping and site lighting
SHOW ME THE NUMBERS
Illustrative California childcare center
Illustrative only. This assumes a 37% federal marginal rate where shown and that the owner can currently use the deduction.
- Property value
- $2,500,000
- Estimated depreciable basis
- $2,000,000
- Potential faster basis
- $500,000 to $760,000
- Potential upfront federal effect
- $185,000 to $281,000
- Study or comparison benchmark
- $7,500 to $17,500+
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.
✓
Property owner or operator has depreciable improvement basis
✓
Recent acquisition, construction or major center renovation
✓
Furniture and equipment are separately scheduled
✓
Lease and funding records establish ownership
STATEWIDE COVERAGE
Serving owners throughout the region.
Los AngelesSan DiegoOrange CountyInland EmpireBay AreaSacramentoCentral ValleyCentral Coast
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 a California childcare license make an improvement short-life property?+
No. Licensing explains business need but does not by itself set a federal asset class. Function, permanence, ownership and authority determine classification.
Are playgrounds automatically 15-year property?+
No. Playground equipment, surfacing, fencing, drainage and structural improvements can have different facts. Each component should be identified and supported.
Can a tenant-operated daycare study its buildout?+
Potentially, if the tenant has depreciable basis. The lease, allowances, grants, invoices and fixed-asset records should establish who owns each improvement.
Are classroom furnishings part of the real-estate basis?+
They may already be separately capitalized furniture or equipment. The study should reconcile those schedules and avoid counting the same cost twice.
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 September 1, 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.
IRS Topic 704: Depreciation↗IRS Cost Segregation Audit Technique Guide↗IRS Notice 2026-11: 100% bonus depreciation guidance↗IRS Notice 2026-16: qualified production property↗California FTB federal tax change summary↗IRS Publication 946: How To Depreciate Property↗IRS Cost Segregation Audit Technique Guide↗California 2025 Form 3885A Instructions↗
FREE PRELIMINARY PROPERTY SCREEN