Parking, curbs, walks and site drainage
CALIFORNIA RETAIL OWNERS
Reviewed August 17, 2026 · Updated for current federal bonus-depreciation guidance
The parking lot, tenant buildouts and signs may change the schedule.
Strip retail and neighborhood centers combine a building with exterior improvements, signage, tenant spaces and landlord equipment. A cost segregation study identifies supported components and assigns the appropriate federal recovery period.
- ✓ No study work before payment
- ✓ CPA-ready final report
- ✓ California statewide
WHY IT MATTERS
Move eligible basis into faster recovery periods.
Retail studies require clear treatment of tenant allowances, prior-owner improvements, separately acquired equipment and common-area systems. Grocery, restaurant and service tenants can add complexity, so the report should explain both the engineering methodology and the legal classification rationale.
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 strip-retail components reviewed
Monument signs, tenant signage and site lighting
Landscaping, irrigation, fencing and trash enclosures
Landlord and tenant improvement packages
Dedicated systems supporting qualifying tenant equipment
Canopies, decorative features and removable finishes
SHOW ME THE NUMBERS
Illustrative strip-retail example
Illustrative only. This assumes a 37% federal marginal rate where shown and that the owner can currently use the deduction.
- Property value
- $8,000,000
- Estimated depreciable basis
- $6,400,000
- Potential faster basis
- $1,664,000 to $2,112,000
- Potential upfront federal effect
- $616,000 to $781,000
- Study or comparison benchmark
- Up 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.
✓
Recently acquired neighborhood or strip center
✓
Meaningful building and site-improvement basis
✓
Multiple tenants or recent lease-up work
✓
Long-term operating or value-add business plan
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.
Who depreciates tenant improvements?+
It depends on who paid for and owns the improvements under the lease and tax rules. The owner and CPA should confirm the basis before the study.
Are parking lots generally 15-year property?+
Many qualifying land improvements may use a 15-year recovery period, but land, building access and the facts surrounding each component still matter.
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