Last updated: 2026-06-12
Case-study theme
A Florida shopping center portfolio had been depreciating roof replacements and tenant buildouts over 39 years. That is the default result when repair, replacement, and tenant-improvement facts are not reviewed closely.
The annual review identified $745,000 in expenses that qualified for immediate deduction, generating $277,000 in tax savings. The dollars were not new. They were already inside the property records, waiting for someone to connect the fixed asset schedule, invoices, and repair facts.
Records that matter
- Repair and maintenance invoices
- Roof, HVAC, flooring, and buildout replacement records
- Tenant improvement schedules
- Photos, inspection notes, and contractor scopes
- Current depreciation and fixed asset schedules
- CPA workpapers showing how costs were originally classified
What JPOPE looks for
The review separates work that may be currently deductible from work that should be capitalized, identifies partial-disposition or retirement opportunities where relevant, and coordinates the conclusion with the CPA so return treatment has clear support.
Planning takeaway
A cost segregation study should not be a one-time event. Buildings change, tenants change, systems get replaced, and tax law changes. An annual review keeps those changes from turning into missed deductions.