- Home
- Property Types
- Medical & Care
Cost Segregation for Medical & Care Facilities
Healthcare and care facilities are built around the people and equipment inside them. Medical gas, dedicated plumbing, equipment power, casework and specialty finishes are installed for the practice or the care program, not for the building, and that is the population an engineered study separates.
Where the value is in medical and care property
Medical offices are among the asset types where our engineering team has deep experience.
- Medical office buildings
- Medical office condos
- Dental and surgery centers
- Assisted living facilities
- Independent living facilities
- Daycare facilities
Utilities serve the practice, not the structure
Medical gas and vacuum piping, dedicated plumbing to exam rooms and operatories, sterilizer connections and the dedicated power feeding imaging and clinical equipment are generally treated as serving the equipment, and the study documents why.
Casework and finishes are personal property
Exam room cabinetry, reception millwork, specialty flooring, decorative and procedure lighting and privacy glazing routinely land in the 5-year class. Medical office condos are especially interior-heavy for that reason.
Care facilities depend on how they operate
Assisted living, independent living and daycare facilities carry kitchens, furnishings, nurse call and safety systems, and play and outdoor areas. Whether a senior living building is 27.5-year residential rental or 39-year nonresidential property depends on the facts, including the services provided and how income is earned.
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.
Medical and Care cost segregation questions
Still have a question? Ask Engineering.
Are lead-lined walls a short-life asset?
Generally no. Lead lining installed within a wall assembly is usually treated as a structural component. The dedicated electrical service, conduit and equipment connections feeding an imaging suite are a different question, and those we pursue, documented rather than assumed.
I own the building through an LLC and lease it to my practice. Does that work?
That structure is common and does not prevent a study. Which entity claims the deduction and how the deductions are used are questions for your CPA, and we work with them directly.
Is assisted or independent living 27.5-year or 39-year property?
It depends on the facts. A facility whose units are dwelling units and whose income is predominantly rent can be residential rental property, while a facility that is primarily a provider of care and services may be nonresidential. The study documents the components either way, and the building's classification is settled with your CPA. See independent living facilities.
We lease our space. Can we still do a study?
Yes, on the leasehold improvements you funded and own. Tenant-owned build-out is a legitimate study population, and dental practices and surgery centers often fund substantial build-outs. See dental and surgery centers.
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.