Real estate and tax in Fontana
Fontana’s industrial land sits where the I-10 and I-15 meet, and warehouse and distribution buildings are made of exactly the components a cost segregation study is designed to find.
What this looks like in Fontana
A distribution building is not one asset. Yard paving, site lighting, security and fire systems, specialised electrical, and dock equipment wear out on very different schedules than the shell does, and they are not all recovered over the same period.
Land held for future development is treated differently again. Carrying costs on undeveloped land are not automatically deductible in the year they are paid, and the election that governs it is made annually.
What gets examined
- Whether a cost segregation study is worth commissioning, modelled before it is ordered
- Whether accelerated deductions will actually be usable or will sit suspended as passive losses
- Capitalisation elections on land held for development
Common questions
- Is a cost segregation study worth it on a Fontana warehouse?
- It depends on two things: how much of the building sits in shorter-lived components, and whether you can actually use the deductions this year. Accelerating a deduction achieves nothing if the resulting loss is passive and gets suspended. That is why the study should be modelled against your own tax position before it is commissioned rather than after.
- Do you work with warehouse and industrial property owners in Fontana?
- Yes. Industrial and distribution property raises particular questions around cost recovery, tenant improvements, and how the operating business and the real property should be held. Consultations are held at the Riverside office, a short drive from Fontana.
Start with a conversation
Tell us what you are working with and we will tell you whether it is something we handle.