Cost segregation documentation for auto dealerships
Not every part of your store is 39 years old.
Your service lifts, paint booth, dedicated electrical, brand signage, paving and lot lighting can often be depreciated over 5, 7 or 15 years instead of 39. DealerBasis finds those parts in your dealership, documents them, and shows what they could be worth to you, so your CPA can act with confidence.
Free preliminary estimate · No site visit needed · No obligation
Where a dealership's cost can go
Illustration based on typical preliminary dealership allocations. Every store is different; your estimate shows a range for your property.
Cost segregation in plain English
Same building. Same dollars. Deductions sooner.
When you buy or build a dealership, the tax default is to depreciate nearly the whole cost over 39 years. But a dealership is not one thing. It's a building plus hundreds of parts that wear out much faster.
The default
Without a study, most of the cost is treated as one 39-year building. You deduct a small slice each year for decades.
The breakdown
A cost segregation study identifies the parts that the tax rules treat as 5-, 7- or 15-year property and assigns each its share of the cost.
The result
Those shorter-life parts are deducted much sooner, often in the first year with bonus depreciation. That frees up cash you can use now.
It's a timing benefit, not free money. Cost segregation moves deductions earlier. When you sell the property, part of the benefit can be taxed back ("recapture"). For most owners, getting deductions years sooner is still worth a lot. Your CPA weighs this for your situation.
Why dealerships
Few buildings are packed with more short-life parts than a dealership.
The IRS even published a classification matrix specifically for auto dealerships in its Cost Segregation Audit Techniques Guide. Its examiners are directed not to adjust classifications that follow it. Every DealerBasis package is built around that matrix.
Examples follow the IRS Auto Dealership Industry Matrix (Cost Segregation Audit Techniques Guide, Chapter 7.5). Final classification of each item is made by the professional who signs your study.
Why now
The rules have rarely been this favorable.
100% bonus is permanent
For property acquired after January 19, 2025, the One Big Beautiful Bill Act (signed July 4, 2025) made 100% bonus depreciation permanent. Short-life parts identified in a study can often be deducted in full in the first year.
Older stores still qualify
Bought or built years ago? Depreciation you missed can usually be caught up in a single year by filing Form 3115, without amending prior returns. Your CPA decides how to apply it.
Remodels and additions count
Brand image upgrades, service additions, make-ready bays and car washes each add new property. Each one is a fresh chance to classify parts correctly.
Timing matters: for a project started before January 20, 2025 but finished later, different bonus rates or a special election may apply. We flag it; your CPA confirms it.
How it works
Three steps. You decide at each one.
Start free. Only move forward if the numbers make sense for you.
Free preliminary estimate
$0
- Built from public records: appraisal district, deed history and state construction filings
- Every construction and remodel layer at your store
- A conservative-to-strong range of first-year deductions and tax deferred
- One to two pages, plain English
You provide: the store name and city. That's it.
Documentation Package
$1,500 flat · credited toward a signed study
- On-site walk of your store with dated photos of each component
- Your records collected and indexed
- Draft allocation workpapers built on the IRS dealership matrix
- Your estimate refined with real data
- A written list of questions for your CPA
You provide: about an hour of access and the records you have.
Signed study
Fixed fee quoted up front
- Finalized and signed by your CPA or a licensed cost segregation provider we coordinate with
- The report your CPA uses on your tax return
- Our package does the legwork, so this step goes faster
- Your $1,500 is credited toward it
Who decides: you and your CPA. Nothing is filed without them.
Exactly what you get
No surprises about what each step is, and isn't.
| Free estimate | Documentation Package | Signed study | |
|---|---|---|---|
| Cost | $0 | $1,500 flat | Fixed fee, quoted up front |
| Based on | Public records | Your records + site walk | Professional review of the package |
| Site walk with dated photos | No | Yes | Yes, via the package |
| Records collected and indexed | No | Yes | Yes |
| Component-by-component allocation | Typical percentages | Draft, for review | Final |
| Questions for your CPA | No | Yes | Answered |
| Signed by a licensed professional | No | No | Yes |
| Can be used on a tax return | No | Only after professional review | Yes |
What an estimate looks like
A hypothetical dealership, by the numbers.
A store bought in 2025 for $6.2 million, with 25% of the price allocated to land. Illustrative only. Your numbers depend on your property, your records and your tax situation.
How to read it
"Extra first-year depreciation" is the additional deduction compared with treating the whole building as 39-year property. "Tax deferred" is what that deduction could save in federal income tax this year at the owner's rate.
Your free estimate shows these figures as a range, from conservative to strong, for every building and remodel at your store.
Get my estimatePricing
Flat fees. Never a percentage of your savings.
The IRS tells its examiners to look closely at studies priced as a share of the tax benefit, because that pay structure rewards aggressive numbers. We price by the work, so our only incentive is getting it right.
Preliminary estimate
$0
- Public-records research
- Range of first-year deductions
- Every building and remodel layer
Documentation Package
$1,500 per store
- Site walk with dated photos
- Records index
- Draft allocation workpapers
- Questions for your CPA
- Credited in full toward a signed study
Signed study
Quoted fixed fee
- Based on store size and complexity
- Agreed before any work starts
- Coordinated with your CPA
Multiple stores under one owner? Ask about group pricing.
Straight talk
What DealerBasis is, and what it isn't.
DealerBasis is a service of VOXREM, LLC, based in East Texas and focused only on auto dealerships.
We are
- Dealership specialists. Every tool we use is built around how dealerships are actually built and used.
- Researchers and documenters. We find the history of your property and record what's there.
- Your coordinator. We work with your CPA and, when you want a signed study, a licensed provider.
- Plain-spoken. If the numbers don't make sense for your store, we'll tell you.
We are not
- A CPA firm, law firm or engineering firm.
- Tax advisors. We don't tell you what to file. Your CPA does.
- The signer of your study. A licensed professional signs it.
- Paid on a percentage of your savings. Ever.
For CPAs
We do the legwork. You keep the client.
Dealership clients ask about cost segregation. We give you organized evidence to work from, not a sales pitch to compete with.
- Dated site photos tied to each component
- Property history: acquisition dates, remodel layers and cost sources
- Draft allocations mapped to the IRS dealership matrix and CSI numbering
- Flags for bonus timing, Form 3115 catch-up, qualified improvement property and possible double-counting
- An allocation spreadsheet you can work from
Frequently asked questions
Everything you'd want to ask.
What is cost segregation, in one sentence?
It's an analysis that separates a building's cost into parts with shorter tax lives (5, 7 or 15 years) so you can deduct them sooner instead of over 39 years.
Is this allowed by the IRS?
Yes. The IRS publishes a Cost Segregation Audit Techniques Guide that explains how studies should be done, and it includes a matrix specifically for auto dealerships. What matters is that the work is well documented and done by qualified people.
Will this get me audited?
Nobody can promise audit outcomes. The IRS guide lists the elements of a quality study, such as documentation, a clear method, component-level costs and reconciliation to actual cost. Our packages are organized around those elements so the signed study rests on solid evidence.
Is the Documentation Package a cost segregation study?
No. It's the evidence and draft workpapers a study is built from: photos, records, a draft allocation and questions for your CPA. It's clearly labeled as a draft. To use the numbers on a tax return, your CPA or a licensed cost segregation provider must review and sign off.
Who signs the final study?
A licensed professional: your own CPA, if they're comfortable doing so, or a licensed cost segregation provider we coordinate with. DealerBasis doesn't sign studies.
How much does the signed study cost?
It's a fixed fee, quoted before any work starts, based on the size and complexity of your store. It's never a percentage of your tax savings. The $1,500 you paid for the Documentation Package is credited toward it.
My store was bought or built years ago. Is it too late?
Usually not. Depreciation you could have taken in earlier years can generally be caught up in the current year with Form 3115, without amending past returns. Very old stores have less left to gain, and your free estimate will show that honestly.
We just remodeled, added service bays or built a car wash.
Those are some of the best candidates. Each project is a new layer of property placed in service on its own date, and interior remodel work can often qualify as 15-year property. Tell us about recent projects when you request your estimate.
We lease our building. Does this apply to us?
The benefit generally goes to whoever owns and depreciates the property. If a related company owns the real estate, it usually benefits. Improvements a tenant pays for may qualify too. Tell us how your real estate is held, and your CPA will confirm who can use the deduction.
What records do you need?
For the free estimate, nothing. For the package, whatever you have helps:
- Closing statement or purchase agreement
- Appraisal
- Construction contracts, pay applications and change orders
- Plans or drawings
- Your fixed asset or depreciation schedule
Missing something? That's normal. We note what was requested and what we used instead.
How long does it take?
A free estimate typically takes a few business days. A Documentation Package usually takes two to three weeks from the site walk, depending mostly on how quickly records come in.
Do I need to involve my CPA?
Yes, and we want them involved. They decide how and when to use the results on your return. We're happy to talk with them directly.
What happens when I sell the property?
Some of the accelerated depreciation may be taxed back as "recapture." Cost segregation is mainly about timing: deductions now instead of later. Your CPA can model what makes sense given how long you plan to hold the property.
Where do you work?
We're based in East Texas and work with dealerships across Texas. Outside Texas? Ask us.
Free preliminary estimate
See what your store could be worth. Free.
Tell us which dealership and we'll research it from public records and send you a one- to two-page estimate, usually within a few business days. No site visit, no cost, no obligation.
- Every building and remodel layer at your store
- A conservative-to-strong range
- Plain English your CPA can review