For Florida food entrepreneurs, the “commissary requirement” is often viewed as a frustrating regulatory hurdle. Most Florida counties mandate that mobile food vendors, caterers, and ghost kitchen operators utilize a licensed commissary for prep, storage, and sanitation.
However, if you have built out your own commissary or made significant improvements to a leased space—installing heavy-duty plumbing, specialized electrical, grease traps, or high-capacity hood systems—you are sitting on a tax goldmine.
Through a Cost Segregation Study, these improvements can be reclassified from a standard 39-year depreciation schedule to 5-, 7-, or 15-year property, dramatically accelerating your cash flow.
Why Florida Commissary Owners Need Cost Segregation
In counties like Duval, Orange, and Hillsborough, the “Florida Building Code” and “Interceptors and Separators” regulations (Section 1003) require specific, expensive infrastructure:
- Grease Traps & Interceptors: Mandatory for fixtures with grease-laden waste.
- Specialized Plumbing: High-temp dishwashers and floor drains.
- Electrical Distribution: Heavy-duty power boxes for walk-ins and industrial ovens.
- Hood Systems: Essential for ventilation and fire safety.
By default, the IRS classifies “building improvements” as 39-year real property. But an engineering-based cost segregation study proves that these specific kitchen assets are Personal Property (§1245) or Land Improvements, allowing you to front-load your deductions.
The 100% Bonus Depreciation Reset (2025/2026 Update)
The landscape has shifted with recent legislation like the One Big Beautiful Bill Act (OBBBA).
- 100% Bonus Depreciation: Effectively restored for qualifying assets with a class life of 20 years or less (5, 7, and 15-year property).
- Qualified Production Property: New provisions allow for 100% expensing of certain non-residential real property used in production.
- The Catch: To maximize this, you must have a formal cost segregation report to verify which assets qualify for these accelerated rates.
What Assets Are Hiding in Your Kitchen?
| Asset Type | Standard Life | Reclassified Life | Bonus Eligible? |
| Plumbing / Grease Traps | 39 Years | 5 or 15 Years | Yes (100%) |
| Electrical / Hood Power | 39 Years | 5 or 7 Years | Yes (100%) |
| Kitchen Flooring/Tiling | 39 Years | 5 Years | Yes (100%) |
| Fencing & Sidewalks | 39 Years | 15 Years | Yes (100%) |
Get Your Free Cost Segregation Estimate
Stop letting your cash flow sit locked in 39-year depreciation schedules. Request a professional feasibility analysis from Nexus Tax Books today.
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FAQ: Cost Segregation for Florida Kitchens
What is a Cost Segregation Study?
It is a tax strategy that identifies and reclassifies personal property assets to shorten the depreciation time for taxation purposes, which reduces current income tax obligations.
Can I do a study on a kitchen I built years ago?
Yes. The IRS allows for “Look-Back” studies. You can claim a “catch-up” deduction in the current year for all the depreciation you missed in previous years without amending prior returns (using Form 3115).
Is 100% Bonus Depreciation available in 2026?
Yes, under the OBBBA, 100% bonus depreciation is permanently restored for qualified property acquired and placed in service after January 19, 2025.
Does this apply to leased spaces?
Absolutely. Leasehold improvements made by the tenant are eligible for cost segregation and often represent the highest density of accelerated assets.
Contact Nexus Tax Books
Phone: (904) 385-0466
Email: info@nexustaxbooks.com
Website: www.nexustaxbooks.com