Commercial kitchen and bar equipment
CALIFORNIA RESTAURANT OWNERS
Reviewed August 17, 2026 · Updated for current federal bonus-depreciation guidance
A restaurant buildout contains specialized operating assets.
Restaurants often contain commercial kitchen equipment, dedicated power, specialty plumbing, ventilation, decorative finishes, patios and signage. Cost segregation documents which costs serve the business operation and which remain general building property.
- ✓ No study work before payment
- ✓ CPA-ready final report
- ✓ California statewide
WHY IT MATTERS
Move eligible basis into faster recovery periods.
Restaurant projects can involve landlord allowances, tenant-funded work and separately purchased equipment. A quality study reconciles those sources, establishes ownership and prevents the same cost from appearing in both the building allocation and the equipment schedule.
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 restaurant components reviewed
Dedicated electrical, gas and specialty plumbing
Qualifying ventilation and equipment-support systems
Decorative finishes, counters and removable millwork
Patios, signage and customer-area features
Parking, landscaping and exterior improvements
SHOW ME THE NUMBERS
Illustrative restaurant property example
Illustrative only. This assumes a 37% federal marginal rate where shown and that the owner can currently use the deduction.
- Property value
- $3,000,000
- Estimated depreciable basis
- $2,250,000
- Potential faster basis
- $675,000 to $900,000
- Potential upfront federal effect
- $250,000 to $333,000
- Study or comparison benchmark
- $7,500 to $15,000+
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 has basis in the building or improvements
✓
Buildout and equipment invoices are available
✓
Restaurant is placed in service
✓
CPA confirms ownership and deduction usability
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.
Can a tenant order a study on its buildout?+
Potentially. A tenant with tax basis in leasehold improvements may study those costs even though it does not own the underlying building.
Is all kitchen ventilation short-life property?+
No. Classification depends on function and the equipment served. General building ventilation and structural components remain building property.
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