Commercial · 39-year property
Cost Segregation for Senior Living and Assisted Living
Senior living carries a hotel's finish package, a clinic's infrastructure and a resort's site plan. Studies here routinely reach the upper end of commercial reclassification ranges.
Resident units and common areas
Unit casework, decorative lighting, flooring, wall protection, window treatments, kitchenette appliances and plumbing, nurse call and emergency pull systems, door hardware and access control, plus dining room, salon, theatre and activity-room build-outs are personal property.
Clinical and life-safety layers
Memory care and assisted living add wander management, medication room casework, dedicated exhaust, therapy room equipment and specialty plumbing. Independent living communities add heavier site amenity spend — walking paths, gardens, water features, covered drop-offs and generous parking — all 15-year land improvements.
Component takeoff
What we pull out of senior living facilities
Grouped by the recovery period each component lands on. This is representative, not exhaustive — the takeoff on your building will be longer.
- 5Unit casework, kitchenettes, appliances and dedicated plumbing
- 5Decorative lighting, flooring, wall protection and window treatments
- 5Nurse call, emergency pull cords and wander-management systems
- 5Access control, door hardware and camera systems
- 5Dining, bistro and commercial kitchen equipment and power
- 5Salon, theatre, therapy and activity-room build-out
- 5Data, television and paging cabling
- 7Resident and common-area furniture
- 7Therapy and wellness equipment
- 15Parking, drives, covered drop-offs and porte-cochère paving
- 15Walking paths, courtyards, patios and raised gardens
- 15Site lighting, landscape lighting and water features
- 15Landscaping, irrigation, fencing and screening
- 15Storm drainage, retaining walls and site utilities
- 15Generator pads and emergency power site work
- 39Structure, envelope, roof and corridors
- 39Elevators, stairs and life-safety systems
- 39Central HVAC plant and domestic water distribution
Questions
How much of the basis usually reclassifies on this property type?
Studies on senior living facilities typically move 24% to 36% of depreciable basis into 5, 7 and 15-year classes. That is a planning range from comparable buildings, not a promise — the number that ends up on your return comes from the actual takeoff.
What documents do you need?
The closing statement, the current depreciation schedule and the property address at minimum. Construction records, drawings, pay applications and change orders make the work more precise and often cheaper.
I bought this several years ago. Is it too late?
No. As long as you still own it and placed it in service after 1986, a look-back study captures every missed deduction and brings it forward on the current return via Form 3115. No amended returns.
Related
Other property types
The study is one piece. We can handle the rest of the return.
Deprecio is part of the Shurek Accounting & Tax family of brands. If you want the study and the tax work under one roof — the return, the Form 3115, entity structure, quarterly estimates, multi-state filings — that is a single engagement, not a hand-off between two firms.
No-cost feasibility review
Find out what your building is hiding.
A feasibility review is free and takes about twenty minutes. Bring the closing statement and the depreciation schedule; we will tell you plainly whether a study pays for itself.