Tenant-suite finishes and removable millwork
CALIFORNIA OFFICE OWNERS
Reviewed August 17, 2026 · Updated for current federal bonus-depreciation guidance
Tenant improvements can change the depreciation schedule.
Office properties combine core building systems with tenant suites, conference centers, amenity areas, technology infrastructure and exterior site work. A cost segregation study separates supported shorter-life components from the 39-year building basis.
- ✓ No study work before payment
- ✓ CPA-ready final report
- ✓ California statewide
WHY IT MATTERS
Move eligible basis into faster recovery periods.
The ownership and timing of tenant improvements are critical. Landlord-funded work, tenant-owned improvements, acquired-in-place improvements and later renovations may have different basis and placed-in-service dates. The final schedules must reconcile to the owner’s records.
Plain English: you are not creating a new deduction. You are identifying when supported pieces of the property may be depreciated.
WHAT WE REVIEW
Common office components reviewed
Conference, training and amenity spaces
Dedicated data, security and specialty electrical
Parking, walks, landscaping and site lighting
Signage, decorative features and specialty lighting
Landlord work letters and later renovation projects
SHOW ME THE NUMBERS
Illustrative office example
Illustrative only. This assumes a 37% federal marginal rate where shown and that the owner can currently use the deduction.
- Property value
- $7,500,000
- Estimated depreciable basis
- $5,625,000
- Potential faster basis
- $900,000 to $1,463,000
- Potential upfront federal effect
- $333,000 to $541,000
- Study or comparison benchmark
- $10,000 to $20,000+
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.
✓
Single or multi-tenant office property
✓
Recent acquisition or substantial buildout
✓
Tenant-improvement ownership is documented
✓
Owner can use additional depreciation
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 raised flooring automatically qualify?+
No. Classification depends on use, permanence and the facts. A system serving general building needs may be treated differently from one dedicated to qualifying equipment.
Who claims landlord-funded tenant improvements?+
The party with tax basis generally depreciates the improvement, subject to the lease and tax rules. The owner’s CPA confirms the treatment.
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 17, 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