Why restaurants and bars reclassify well in Florida
Florida has no state income tax, the largest STR market in the country, and rapid population growth. Cost segregation activity is heavy across hospitality, STRs, multifamily, and industrial — with hospitality reclassifications routinely exceeding 30%.
Restaurants & Bars properties have a particular profile that makes cost segregation especially valuable: kitchen equipment, dedicated process systems, decorative finishes. The shell sits on a 39-year recovery period under MACRS — but every restaurants & bars is hundreds of components, many of which qualify for 5-, 7-, or 15-year recovery and accelerated bonus depreciation.
Typical reclassification ratio
For a restaurants & bars in Florida, TDA studies typically reclassify 30–45% of depreciable basis. Combined with 100% OBBBA bonus depreciation on property acquired and placed in service after January 19, 2025, that translates the entire reclassified amount into a year-one deduction.
Florida markets we serve
We deliver restaurants & bars cost segregation studies across Florida, including Miami, Jacksonville, Tampa, Orlando, St. Petersburg. Engineering-based methodology and RSMeans cost data on every engagement.