Gas Station / C-Store Cost Segregation
The three positions our estimate uses for this property type, the components a study itemizes in the shorter lives, and an illustrative example from our estimate engine.
Conservative
45%
of building basis excluding land
Middle of the Road
65%
of building basis excluding land
Aggressive
85%
of building basis excluding land
The shares our estimate uses for this property type. What the three positions mean
Expected reclassification range 70% to 100%, midpoint 90%
The comparative band for every property type is SmartCostSeg house judgment used to gauge an allocation against the type's own Conservative, Middle of the Road and Aggressive positions; it is not an IRS threshold, an industry percentile or a published median.
For this property type the Middle of the Road position sits below the expected reclassification range. The range is our comparative band for the audit risk gauge; the three positions are the shares the estimate uses.
The Conservative, Middle of the Road and Aggressive percentages for Gas Station / C-Store are transcribed verbatim from the Expectation Guide row "Gas Station / C-Store"; they are planning priors, not a substitute for documentation.
An Illustrative Example
Illustrative example computed by our estimate engine: purchase price $2,000,000, land $300,000 at the engine's default share of the price, acquired and placed in service January 1, 2026, so the engine applies a 100% bonus rate. The price and the land share are inputs for this example, not figures for this property type. Results vary with property specifics and your tax situation.
The estimate keeps the building on its 39 year life.
Building basis $1,700,000. First year depreciation without a study $43,590.
| Measure | Conservative | Middle of the Road | Aggressive |
|---|---|---|---|
| Share of the building basis moved | 45% | 65% | 85% |
| Moved to shorter lives | $765,000 | $1,105,000 | $1,445,000 |
| First year depreciation with a study | $788,974 | $1,120,256 | $1,451,538 |
| Additional first year deduction | $745,384 | $1,076,666 | $1,407,948 |
The Middle of the Road position, by class
- Modeled in the 5 year class$736,667
- Modeled in the 15 year class$368,333
- Building on its 39 year life$595,000
First year federal tax savings at each bracket, Middle of the Road
- At the 24% federal bracket: $258,400
- At the 32% federal bracket: $344,533
- At the 35% federal bracket: $376,833
- At the 37% federal bracket: $398,366
Federal income tax only. Your CPA confirms your bracket and any state effect.
These savings assume the full deduction can be used this year. Whether it can depends on your tax situation, including the passive activity rules, and your CPA decides. What a passive activity is
What Usually Moves to Shorter Lives
The components a study itemizes in the shorter lives for this kind of building, and confirms on your property. The example above splits by class only.
Itemized in the 5 year class
- Fuel dispensers, canopy lighting and point-of-sale connections
- Walk-in coolers, display cases and process refrigeration
- Electrical branch circuits and outlets dedicated to equipment
- Plumbing connections dedicated to equipment and appliances
- Low-voltage security, access-control and data cabling
- Decorative and accent lighting fixtures
- Registers and point-of-sale systems
- Miscellaneous removable finishes and accessories
Itemized in the 15 year class
- Parking lot paving, curbs and striping
- Site drainage, storm structures and retention
- Sidewalks and exterior hardscape
- Landscaping, shrubbery and planting beds
- Fencing, gates and retaining walls
- Site and parking-lot lighting (poles, bases, circuits)
- Pylon and monument sign structures
The Building and Its Rules
For this property type the wizard asks three more questions: the share of revenue from fuel sales, the share of floor space used for fuel sales, and the size of the building. The worked example does not apply them.
Start With Your Own Property
The wizard asks the questions for this property type and routes it to the right lane.