Express Car Wash Sample Study
An express car wash bought as an operating facility, where the three positions give the same first year figure and differ only in the split between classes.
Illustrative sample
Dollar figures shown are illustrative and come from the sample's own data. Estimates, never guarantees; results depend on your specific tax situation.
The Property and the Land
Property type
Square feet
4,100
Year built
2021
Stories
1
Acquired
April 1, 2026
Placed in service
April 1, 2026
Purchase price
$2,450,000
Land value
$612,500
How the land was set
illustrative land allocation (25% of the purchase price)
Building basis
$1,837,500
The three positions describe the building only. Land is carved out first and never depreciates, so the less of the price assigned to land, the more there is to depreciate: a low land value is the aggressive land position and a high land value is the conservative one.
The Three Positions
| Position | Conservative | Middle of the Road | Aggressive |
|---|---|---|---|
| First year depreciation with the study | $1,837,500 | $1,837,500 | $1,837,500 |
| Additional first year depreciation | $1,804,076 | $1,804,076 | $1,804,076 |
First year depreciation without a study: $33,424.
All three positions give the same first year figure here; they differ in the split between classes.
Part 1A sets out 9 combinations of land value and position.
These figures come from the study's own depreciation schedules, which the PDF prints in Part 1. The card on the samples page shows the planning estimate, so its figures differ slightly.
How the Basis Was Classified
Classification method: Modeled residual method. This sample is modeled: no site inspection, no engineering take off and no documents were reviewed, and the PDF says so in its methodology.
The class totals below are at the Middle of the Road position, the one this study states.
| Class | Amount | Share of basis |
|---|---|---|
| 5 year property | $857,500 | 47% |
| 15 year land improvements | $137,200 | 7% |
| Wash building and wash site work | $842,800 | 46% |
21 asset rows in the classification schedule.
Every dollar of the $1,837,500 basis is allocated.
$857,500 of section 1245 property, 47% of the basis. What section 1245 property is
The study places the wash building and its site work in a 15 year class at every position, so it treats the whole basis as bonus eligible. The class and the rule behind it are set out below, and your CPA decides whether it applies.
- Asset class 57.1 of Rev. Proc. 87-56 is titled Distributive Trades and Services: Billboard, Service Station Buildings, and Petroleum Marketing Land Improvements. It has a 20 year class life and a 15 year recovery period under the general depreciation system, and its description says it includes car wash buildings and related land improvements. Property with a class life of at least 20 years and less than 25 years is 15 year property under section 168(e)(1), and a building with a class life under 27.5 years is not nonresidential real property under section 168(e)(2)(B). A building takes the class of the activity in which it is primarily used, and a building leased to others generally takes the class of the lessee's activity. Source: IRS Publication 946 (2025), Appendix B, Table B-2; Rev. Proc. 87-56, 1987-2 C.B. 674, asset class 57.1; IRS Publication 5653 (Rev. 2-2025), chapter 2, part L, paragraph (5); IRC section 168(e)(1) and (e)(2)(B); Treas. Reg. section 1.167(a)-11(b)(4)(iii)(b) and (e)(3)(iii)
Bonus rate 100% on the sample's dates: acquired April 1, 2026, placed in service April 1, 2026.
Bonus basis in the study $1,837,500, bonus amount $1,837,500.
Which bonus rate applies to which datesWhich property gets bonus depreciation
Quality and Audit Risk
8 of the 13 principal elements met and 5 partial, by the study's own scorecard.
Audit risk gauge: yellow, with 100% of the basis in the shorter lives.
What Is in the PDF
This PDF has the same parts as the four family rental sample study.
The PDF runs 54 pages.
Start With Your Own Property
The wizard asks the questions for your property and routes it to the right lane.
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