10 anonymized case studies across every major property class, showing the dollar-for-dollar difference between filing without and with an engineering-based cost segregation study under OBBBA 100% bonus depreciation. All numbers are typical mid-range outcomes from TDA engagements.
Site-improvement-heavy lot drove an above-average reclassification ratio. Owner used the year-one deduction to offset gains from a separate property sale, eliminating capital gains tax entirely.
Hotels routinely produce the highest reclassification ratios in cost segregation. The decorative finishes and FF&E across 110 rooms drove the 36% reclassification — a near-million-dollar swing in cash tax saved.
Owner is a high-income W-2 earner. The STR strategy + cost seg combination wiped out roughly 28% of their federal taxable income from their day job — the headline scenario for active STR hosts.
Industrial reclassifies at lower percentages than hotels but the absolute dollars are still substantial — especially on properties with heavy paving and yard improvements typical of last-mile distribution.
Medical office buildings — particularly those with imaging suites, ambulatory surgery, or lab build-outs — are one of the highest-yielding asset classes outside hospitality. Specialty plumbing and dedicated electrical drove the 27% ratio.
Restaurants reclassify at the highest percentages of any asset class — sometimes pushing 45%. The kitchen build-out alone usually accounts for over a third of basis.
Owner is a real-estate professional under §469(c)(7), allowing the rental losses to offset spouse’s W-2 income. Lower reclassification % than commercial but still meaningful absolute dollars.
Retail strip centers consistently reclassify in the 20–28% range. Heavy parking and exterior lighting drive most of the 15-year improvements pool.
Childcare centers are unusually rich in 15-year land improvements (playgrounds, fencing) and 5-year personal property (cabinetry, kitchens, AV). Often overlooked but consistently strong reclassification candidates.