Examples · made-up property
Cost segregation for a self-storage facility
Owners of self-storage facilities.
How it works for this kind of property
A self-storage facility is depreciated over 39 years as a commercial building. A large share of its cost is site work: paving, drive aisles, fencing, gates, site lighting and drainage, which are 15-year property.
More on how it works
The study separates that site work and the facility's shorter-life systems from the buildings, and bonus depreciation can deduct them in the first year.
Which of the 8 studies fit
| Study | Example result |
|---|---|
| Faster depreciation (cost segregation) | Counted in this example |
| Catch-up on past years | Fits, not counted here |
| Inventory cost rules and accounting methods | Fits, not counted here |
| When home-sale income is taxed | Doesn't apply here |
| Energy-efficient home and building credits | Worth a question |
| Energy-efficient buildings and solar | Doesn't apply here |
| Research and hiring credits | Worth a question |
| Property and sales tax | Fits, not counted here |
What the engine found, for your CPA
Example: We checked 69 strategies: 11 fit, 6 need a question, 48 don't apply, and 4 are protection checks.
- Faster depreciation (cost segregation): 15-year site work (paving, lighting, fencing, landscaping); Bonus depreciation; Classification rules for this property type; Cost segregation on a building you bought; Section 179 on qualified real property
- Catch-up on past years: Accounting method changes (Form 3115)
- Inventory cost rules and accounting methods: Cash method for small businesses
- When home-sale income is taxed: No homes, condos or lots sold under contract.
- Energy-efficient home and building credits: Question: Utah state credits
- Energy-efficient buildings and solar: Bought an existing building: 179D is for energy-efficient lighting, HVAC/hot water or envelope property the owner installs (new or as a retrofit) with a certified energy model.
- Research and hiring credits: Question: Paid family leave credit (45S)
- Property and sales tax: Property tax appeal; Property tax review
Common questions
Why is the share for self-storage higher than for an office?
Because so much of the cost is outside the buildings: paving, fencing, gates and lighting. Those are 15-year property.
Does a 1031 exchange change this?
It changes what can be studied. Part of the basis carries over from the property you sold and keeps that property's schedule; the extra you paid can be studied like a new purchase. Your CPA gives the numbers from the old property.
Does someone have to visit the facility?
Nobody has to come out. You do a digital site visit yourself with the Taxtura Site Visit iPhone app or your phone's browser. Larger facilities also get an engineer's review.
The rules behind it, for your CPA
- Pub. 946 (2025) Table B-1 asset class 00.3 Land Improvements
- 26 U.S.C. 168(b)(2)(A)
- Pub. 5653 Ch. 2 L(5)
- Notice 2026-11
- Treas. Reg. 1.168(k)-2(b)(3) original use / used property (5-calendar-year lookback)...
- Instructions for Form 4562 (2025)
- 26 U.S.C. 179(b)(1)-(3), (b)(6), (c), (d)(1),(2),(5),(8), (e)
- Rev. Proc. 2025-32 sec. 3.02 and sec. 4.24
- Rev. Proc. 2023-34
- Rev. Proc. 2019-08 secs. 2.01, 3.02
- Rev. Proc. 2015-13 (as modified)
- Rev. Proc. 2025-23, as modified by Rev. Proc. 2025-28 and Rev. Proc. 2026-32
Every number on this page is an example for a made-up property, computed by our engine. Not tax advice; your CPA reviews and files.