Truck courts, paving, fencing and secured yards
WAREHOUSE AND INDUSTRIAL OWNERS
Reviewed August 17, 2026 · Updated for current federal bonus-depreciation guidance
Industrial real estate is more than a 39-year shell.
A warehouse or industrial facility may include heavy paving, secured yards, loading equipment, specialty power, process-related systems, office buildouts and tenant improvements. Function determines classification, so the operating use matters as much as the physical component.
- ✓ No study work before payment
- ✓ CPA-ready final report
- ✓ California statewide
WHY IT MATTERS
Move eligible basis into faster recovery periods.
General building electrical, plumbing and HVAC normally remain building property. Systems dedicated to qualifying machinery or a specific production process may receive different treatment when the facts support it. The analysis must distinguish real-property infrastructure from equipment already capitalized separately.
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 industrial components reviewed
Dock equipment and material-handling improvements
Dedicated power serving qualifying equipment
Process-related plumbing, ventilation and controls
Office, showroom and tenant-improvement areas
Site lighting, drainage, signage and landscaping
SHOW ME THE NUMBERS
Illustrative warehouse example
Illustrative only. This assumes a 37% federal marginal rate where shown and that the owner can currently use the deduction.
- Property value
- $10,000,000
- Estimated depreciable basis
- $8,000,000
- Potential faster basis
- $1,360,000 to $2,240,000
- Potential upfront federal effect
- $503,000 to $829,000
- Study or comparison benchmark
- $12,000 to $25,000+
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.
✓
Warehouse, distribution or manufacturing use
✓
Meaningful site and improvement basis
✓
Operating systems and tenant costs are documented
✓
Recent acquisition, buildout or expansion
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 specialty electrical become five-year property?+
No. The system’s function and the equipment served must be documented. General building distribution usually remains 39-year property.
Can tenant improvements be included?+
Potentially. The report must establish which party owns and depreciates each improvement and avoid duplicating costs on an existing schedule.
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