Case Study: Cost Segregation Analysis for a Veterinarian Office in Atlanta, GA

vet office cost segregation case study


In 2023, the owners of a veterinarian office in Atlanta, Georgia, undertook strategic tax planning to enhance their investment. The property consists of a single 1-story building encompassing 6,625 square feet. Originally constructed in 2022, the veterinarian office features 1 unit designed to cater to a variety of animals.

The building's exterior showcases a blend of modern and classic architectural elements, including a durable vinyl siding and large standard builder grade windows. The interior is well-appointed, featuring amenities such as high-efficiency HVAC systems, tankless water heaters, and contemporary recessed lighting fixtures. The property also includes a range of medical facilities, including exam rooms with stainless steel countertops.

The owners engaged Engineered Tax Services (ETS) to perform a comprehensive cost segregation study of the property. This study aimed to identify and reclassify specific assets, enabling the acceleration of depreciation and optimizing tax benefits. This case study outlines the cost segregation strategy employed and its significant impact on the financial outlook of the property.


The primary objective of the cost segregation study was to identify and classify the veterinarian office's assets to optimize the owners' tax savings. By breaking down and reallocating components into shorter depreciation life categories, ETS aimed to provide both immediate and long-term financial benefits through accelerated depreciation.


ETS employed a detailed, engineering-based approach, which included:

  1. Physical Inspection: conducting a thorough site visit to identify and photograph the property's components
  2. Document Review: examining architectural plans, construction documents and accounting records
  3. Cost Analysis: applying engineering principles to allocate costs to specific asset classifications
  4. Depreciation Calculation: calculating depreciation using IRS-accepted methods such as the Modified Accelerated Cost Recovery System (MACRS)

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Asset Allocation

5-Year Class Life

Total Depreciation Allocation: $711,468.02 Percentage of Total Depreciable Basis: 24.72%

5-year class life assets identified in this study include:

  • Telephone and computer connections
  • Dedicated medical equipment outlets
  • Veterinarian equipment sinks
  • Dog grooming sink
  • Vinyl plank flooring
  • Accent lighting fixtures

15-Year Class Life

Total Depreciation Allocation: $572,655.68 Percentage of Total Depreciable Basis: 19.89%

15-year class life assets identified in this study include:

  • Site improvements (parking lot, sidewalks, curbs, landscaping)
  • Exterior signage
  • Decorative fencing and gates
  • Concrete equipment pads

39-Year Class Life

Total Depreciation Allocation: $1,594,324.69 Percentage of Total Depreciable Basis: 55.39%

39-year class life assets identified in this study include:

  • Building structure (walls, roof, windows, doors)
  • HVAC systems and ductwork
  • Plumbing systems
  • Electrical systems
  • Drywall partitions
  • Acoustic ceilings

Class Life Details:


The cost segregation study for this veterinarian office in Atlanta, Georgia, demonstrates the substantial financial advantages of strategic tax planning. By reclassifying property components into shorter depreciation categories, the study enabled accelerated depreciation, resulting in maximized tax savings and improved cashflow. This approach not only enhanced the veterinarian office's profitability but also allowed for more efficient capital management and future property upgrades. The case study illustrates how cost segregation can significantly boost the financial performance of real estate investments.

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