- Home
- Property Types
- Automotive
Cost Segregation for Gas Stations, Car Washes & Automotive Property
Automotive property is mostly equipment and site work wrapped around a modest building. Fuel systems, wash tunnels, lifts and the paving that carries every vehicle through the site are where a study finds its short-life value, and some fuel outlets can be 15-year property in their entirety.
Where the value is in automotive property
Gas stations are among the asset types where our engineering team has deep experience.
- Gas stations
- Gas stations with retail
- Car washes
- Auto repair shops
- Auto dealerships
Retail motor fuels outlets can be 15-year property
A building that qualifies as a retail motor fuels outlet under §168(e)(3)(E)(iii) is 15-year property in its entirety, rather than 39-year. Whether a station with a convenience store qualifies depends on statutory tests about how the property is used and where its revenue comes from, and the study documents that analysis.
Wash tunnels and service bays are equipment
Car wash conveyors, brushes, dryers, water reclamation, vacuum and pay stations, and the dedicated plumbing and power serving them are equipment rather than building. Repair shops carry lifts, compressed air, waste oil systems and dedicated equipment power.
Dealerships live on the lot
Display and inventory paving, lot lighting, signage, fencing and landscaping are land improvements, generally 15-year property, and on a dealership they are a large part of the property.
Commonly reclassified components
Representative of what an engineered study identifies in this asset class. Actual components and recovery periods depend on the property and are documented individually in your report.
What would a study find on your property?
Send the property details. Engineering prepares the estimate, and you receive a written, fixed-fee proposal within 24 to 48 hours.
Automotive cost segregation questions
Still have a question? Ask Engineering.
Does every gas station qualify as 15-year property?
Not automatically. The retail motor fuels outlet rules turn on how the property is used and where its revenue comes from, and a large convenience store or quick-service restaurant can change the answer. Where the building does not qualify, the study still separates the fuel system, canopy, equipment and site work into their own short lives.
Is a car wash mostly equipment?
A large part of a car wash's basis is typically equipment and site work: tunnel and bay equipment, water systems, vacuum and pay stations, paving and lighting. The study documents each system and what it serves, so the building that remains is genuinely the building.
We are renovating a dealership for a brand image program. What applies?
The new spend is segregated into its recovery periods, interior non-structural work is generally qualified improvement property, and the facade, finishes and fixtures you removed can be written off through a partial asset disposition.
Get a Commercial Savings Estimate
Fixed-fee proposal in 24 to 48 hours.
- Prepared by Engineering
- Lifetime audit defense
- NDAs available
Request your estimate
Estimates are prepared by our Engineering team.
Request received
Engineering will review the property and send your written estimate and proposal within 24 to 48 hours.
Preview site: this form is not yet connected, so nothing was sent.