Faster depreciation: Bayshore Medical Office (62,000 sq ft)

C corporation · FL · tax year 2026 · Tampa, FL · contact Peter Lindqvist, VP Finance

Conservative Moderate Aggressive

Asset schedule CSV (moderate)

ESTIMATE, NOT A STUDY. Benchmark percentages for medical office. Order an engineered study before anything is filed.

Fit screen · is the study worth buying?

Worth it$194,185

Worth it: conservative net benefit $194,185 after the $4,950 fee and exit tax.

Moderate case: $219,831 NPV after the fee and the extra tax at a sale in 2036 (12-year hold).

C corporation: the passive loss rules for closely held / personal service corporations not modeled (CPA review)
exit tax at a 12-year sale is $354,605 higher with the study (recapture)
long-term capital gain rate 20% is a PLACEHOLDER: enter the builder's rate
based on benchmark percentages: estimate, not a study
state FL: conformity needs CPA review; state savings excluded

building cost

$20.8M

Land (not depreciable)

$2.90M

Reclassified, moderate

$3.10M

Building class

39-yr

Year-1 deduction with study

$2.28M

Without study

$423k

Placed in service Mar 1, 2024 · IRS audit guide table: retail (closest) · state FL: cpa review

Reclassification summary

Moderate scenario

Asset class	Life	Basis	Share
15-year land improvements	15 yr	$3,099,200	14.9%
39-year nonresidential real property	39 yr	$17,700,800	85.1%
Building cost		$20,800,000	100%

With vs without the study

deductions by tax year; difference after passive-loss limits where they apply

Tax year	With study	Without study	Usable difference	Cash tax saved
2024	$2,281,361	$422,864	in the catch-up	—
2025	$571,618	$533,312	in the catch-up	—
2026	$559,841	$533,312	$1,923,333	$403,900
2027	$549,304	$533,312	$15,992	$3,358
2028	$539,758	$533,312	$6,446	$1,354
2029	$531,081	$533,312	−$2,231	−$469
2030	$526,990	$533,312	−$6,322	−$1,328
2031	$526,990	$533,312	−$6,322	−$1,328
Lifetime	$20,800,000	$20,800,000	Same total over the life: the study moves deductions earlier.

Catching up on past years

Allowable through prior year

$2.85M

Claimed on returns

$956k

One-time catch-up

−$1.90M

negative lowers income

Year of change

2026

Who files: The taxpayer that owns the property (individual, partnership, S corporation or corporation) files the tax form with its timely filed original return for the year of change (incl. extensions); the CPA prepares it; a duplicate goes to the IRS (Ogden) no earlier than the first day of the year of change and no later than when the original is filed. Partners and S corp shareholders do not file their own 3115.

the tax form attached to the timely filed original return for the year of change
Duplicate the tax form to IRS Ogden (see Instructions for the tax form)
the tax form for the year of change with the new classification

automatic change list for the year of change not re-checked after IRS guidance (library: 2026 UNVERIFIED)

Recapture at exit

if sold in each year; 1031 exchange defers it

Sale year	Taxed as ordinary income	Taxed at up to 25%	Extra exit tax	Tax saved to date	Net after exit
2025 (1 yr)	$0	$773,947	$395,002	$395,002	$0
2026 (2 yrs)	$0	$1,434,427	$401,810	$401,810	$0
2027 (3 yrs)	$0	$2,094,907	$406,274	$406,274	$0
2028 (4 yrs)	$0	$2,755,387	$408,630	$408,630	$0
2029 (5 yrs)	$0	$3,415,867	$409,073	$409,073	$0
2030 (6 yrs)	$0	$4,076,347	$408,175	$408,175	$0
2031 (7 yrs)	$0	$4,736,827	$406,847	$406,847	$0
2032 (8 yrs)	$0	$5,397,307	$405,532	$405,532	$0
2033 (9 yrs)	$0	$6,057,787	$404,218	$404,218	$0
2034 (10 yrs)	$0	$6,718,267	$402,903	$402,903	$0
2035 (11 yrs)	$0	$7,378,747	$401,588	$401,588	$0
2036 (12 yrs)	$0	$8,039,227	$400,274	$400,274	$0

· sale price not given: building cost + land used (gain = depreciation taken)
· sale month 6 (default); improvements price allocated pro rata by original cost (cs.sale_allocation)
· land gain is the same with or without the study and is excluded
· 1031 exchange: gain and recapture are deferred into the replacement property; personal property recapture can still arise if the replacement has less personal property property (personal property(b)(4)); CPA review
· corporate 291 and dealer property not modeled

Audit binder manifest

Job cost ledger / general ledger
total cost and reconciliation (IRS audit guide element 10)
missing
Contracts, subcontracts and change orders
direct cost support
missing
AIA G702/G703 pay applications
reconcile to contractor cost
missing
Invoices for owner-furnished equipment (appliances, FF&E)
separately acquired personal property property, no double counting
missing
Drawings and specifications (as-built)
take-offs (IRS audit guide element 8)
missing
Photographs / site visit record
site inspection (IRS audit guide ch.5 step 6)
missing
Land evidence (appraisal, closing statement, land ledger)
land allocation (IRS audit guide ch.5 step 12b)
provided
Purchase agreement and closing statement
basis and 1060 allocation check (Peco Foods)
not applicable
Cost guide citations for RCNLD
IRS audit guide ch.3.C.2 sources referenced by volume/page
not applicable
Placed-in-service evidence (certificate of occupancy, first lease)
placed-in-service date
missing
Construction start / binding contract evidence
bonus acquisition date (Notice 2026-11 sec. 3.03)
missing
Engagement letter and fee arrangement
fee arrangement (IRS audit guide ch.5 step 4)
missing
Study data: classification of every piece with IRS audit guide row and rule
schedule of assets
generated
Asset schedule CSV with sum check
fixed asset import
generated
Matrix crosswalk (component -> IRS audit guide row -> class)
examiners check consistency with the matrix
generated
Reconciliation workpaper
allocated total = building cost
generated
With / without study schedules
deduction timing
generated
Exit-year recapture table
recapture planning
generated
Fit screen
net benefit after fee and exit tax
generated
one-time catch-up adjustment workpaper and the tax form data sheet
look-back method change
generated
Partial asset disposition computations
PAD loss support
not applicable
Needs-review list (gray areas, AI suggestions labeled, resolutions)
open items before signing
generated

IRS audit guide quality checklist

1. Preparation by an individual with expertise and experience
preparer credentials not given
missing
2. Detailed description of the methodology
Rule-of-thumb benchmark (IRS audit guide ch.3.C.6): an estimate, not a study
missing
3. Use of appropriate documentation
0 documents listed; every piece has a source pointer
missing
4. Interviews conducted with appropriate parties
no interviews logged
missing
5. Use of a common nomenclature
components named by IRS audit guide matrix rows (atg_row column)
missing
6. Use of a standard numbering system
builder cost codes carried on every line
missing
7. Explanation of the legal analysis
each piece cites a rule id with its authority (IRS audit guide matrix row, Reg. 1.48-1(e), 168(e))
missing
8. Determination of unit costs and engineering take-off
no component inventory: actual line costs used without take-off
missing
9. Organization of assets into lists or groups
pieces grouped by recovery class and personal property/building property (classTotals)
met
10. Reconciliation of total allocated costs to total actual costs
reconciled: allocated total equals building cost
met
11. Explanation of the treatment of indirect costs
no indirect costs listed
missing
12. Identification and listing of personal property property
0 personal property pieces listed
partial
13. Consideration of related aspects (inventory cost rules, method change, sampling)
inventory cost rules of indirects and interest must be confirmed by the CPA; method change (3115) computed; 0 items need review
partial

Notes for the CPA

· ESTIMATE, NOT A STUDY: benchmark medical_office (best grade B, estimate); an engineering study must replace it (reclass_benchmarks app_usage_rule)
· estimate bands calibrated to the engine's IRS audit guide-literal full study for medical_office: conservative 13.2% / moderate 14.9% (engine full-study distribution (IRS audit guide-literal), scripts/clientsim mass run 2026-10-26, docs/HARDEN_REPORT.md and docs/FINISH_REPORT.md); aggressive 28% = the sourced benchmark typical. Sourced vendor range 16-40% (typical 28%) relies on positions the IRS audit guide matrix treats as building property; no dedicated IRS audit guide matrix for this type, so the calibrating study used the closest one (weaker evidence)
· benchmark split "UNVERIFIED" / "UNVERIFIED" not numeric: all reclassified dollars put in 15-year (slower; conservative)
· state rule: Florida continues to decouple from bonus depreciation; apply pre-OBBBA bonus percentages for the decoupling adjustment: add back, then deduct the same amount ratably over seven years including the add-back year; remaining federal bonus is added back and depreciated by regular rules.
· state 179: "own limit (pre-OBBBA cap/phase-out)" (not used by this study; no 179 elected)
· state conformity: CPA review
· nonresidential real property
· no dedicated IRS audit guide matrix for medical_office: calc-data: "general IRS audit guide (pharma_biotech for labs/clean rooms)"; retail used as the closest industry matrix; reclassifications are UNVERIFIED and excluded from the conservative scenario

Research tool for CPA review; not tax advice. AI suggestions are labeled and never change a number. estimate, not a study. CSV: 4 rows; cost column ties to basis: yes ($20.8M). The CSV uses the moderate scenario shown here.