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Cost Segregation for Dental & Surgery Centers
Dental practices and surgery centers are among the most component-dense build-outs in commercial real estate. Dedicated plumbing to every operatory, medical gas and vacuum, power for imaging and equipment, sterilization connections and casework are installed for the practice, not for the building.

Where the value is in a procedure-based practice
Medical offices are among the property types our engineering team has deep experience studying.
- Dental practices
- Oral surgery and specialty dental suites
- Ambulatory surgery centers
- Outpatient procedure centers
Utilities serve the practice, not the structure
Medical gas and vacuum piping, dedicated plumbing and drainage to operatories, sterilizer and autoclave connections, and the dedicated power feeding imaging and procedure equipment are analyzed as systems serving the practice, with the reasoning documented.
Casework and finishes
Operatory cabinetry, reception millwork, specialty flooring, procedure and decorative lighting, and privacy glazing are generally shorter-life property, separated from the shell.
Surgery centers add another layer
An ambulatory surgery center adds emergency power, specialty air handling for operating rooms, medical gas manifolds and more dedicated plumbing than a general practice suite. Some of that is building infrastructure and some of it serves the procedures, so each system is traced to its purpose.
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.
Dental and Surgery Centers cost segregation questions
Still have a question? Ask Engineering.
What makes a surgery center different from a dental office in a study?
Scale and redundancy. A surgery center carries emergency power, specialty air handling for operating rooms, medical gas manifolds and more dedicated plumbing. Some of that is building infrastructure and some serves the procedures, so the study traces each system to what it actually serves and documents the classification.
We are opening a new location in leased space. Should we study the build-out?
If you funded and own the build-out, yes. Operatory and procedure-room fit-outs are dense with shorter-life systems, and studying the improvements in the year they are placed in service puts the deduction on the first return that includes them.
Our practice was built out years ago without a study. Is it too late?
No. If you still own the improvements, a look-back study calculates the depreciation you missed, and your CPA claims it in the current year through Form 3115 without amending prior returns.
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