# Financial assumptions

- Fictional acquisition price of $5,800,000 includes $1,150,000 of nondepreciable land; the $4,650,000 component basis is an illustrative allocation, not an appraisal, construction bid or tax conclusion.
- The example assumes 100% owner-operated business use and a calendar 2026 tax year. Acquisition and placed-in-service dates are set to January 1, 2026 only to make the illustrative schedule computable.
- The fictional 2006 three-storey building has a 150 by 90 foot floor plate, nine office suites, eight leased suites and a 3.0 acre site. No real property, tenant, brand, photo or trade dress is depicted.
- Owner basis excludes tenant furniture, tenant fit-out, tenant cabling, tenant coffee equipment, tenant optical displays and tenant monument panels. They appear only as staging where shown.
- The 5-year carpet rows assume strippable adhesive and use the ATG floor-covering analogy documented in the research notes. The tax class is fact-dependent and not a conclusion for another property.
- The dedicated telecom closet cooling unit is assumed to satisfy the ATG sole-justification test. General comfort HVAC, building power, lighting, sprinkler and fire alarm remain in the building rows.
- Price and land are illustrative value splits. No appraisal, cost study, engineering report or construction contract supports these figures.
- Bonus depreciation eligibility and treatment were not researched for this example. No bonus treatment or section 179 deduction is modeled. Taxpayer limits, elections and ADS are outside scope.
- Without bonus, short-life property uses the GDS declining-balance conventions shown by the schedule engine, and building property uses straight-line and the mid-month convention. Displayed depreciation is not tax savings.

Classifications are illustrative educational assumptions, not tax advice. Primary references are IRS Publication 946 and the IRS Cost Segregation Audit Techniques Guide.