Inside a restaurant
See what gets built, what gets installed, and how a study classifies each asset.
That was a hypothetical restaurant. Yours has its own purchase price and land split.
See the first-year deduction range a study would look for on your building.
Run the 30-second check »Take a closer look
Click a fixture to identify it. Drag to orbit. Choose from the list to focus on a component.
Edit the dollar example & see the assumptions
This is an illustrative $5 million owner-funded project, not a franchise quote. Change the budget to explore proportional allocations; a study determines actual asset costs.
$5,000,000 project · $1,448,798 estimated first-year depreciation · $1,012,954 additional versus the stated baseline. Franchise amortization: $1,667 separately.
What the comparison assumes: $400,000 of purchased kitchen equipment, cooler, menus and office furniture is already classified separately. The remaining costs are initially in the building account. The illustrated study identifies another $1,025,000 of eligible short-life costs. This is a demonstration, not a promised study result.
Assumes eligible property acquired and placed in service after January 19, 2025, 100% business use and 100% federal bonus; no ADS requirement or election out. The building uses 39-year straight-line depreciation with the mid-month convention. Franchise rights use 180-month Section 197 amortization. Deductions are before owner-specific limits, state adjustments and eventual recapture. No tax rate or cash savings is assumed.
Cost allocations include illustrative installed and allocable project costs. Land and franchise rights are additional; opening inventory, working capital and financing are outside this simplified project.
IRS depreciation rules · IRS franchise amortization · Restaurant classification guide · Franchise fee reference
Watch the native rendered exterior and interior
Actual Blender Cycles camera footage. The guided tour uses these rendered bookends; construction and free exploration use the shared interactive model.
Illustrative owner-funded development: every component and its recovery period
Owner owns and uses all modeled assets in the business. The tables below list every component this walkthrough builds, the recovery period it is assigned in this illustration, and its illustrative allocation.
Illustrative owner-funded development. A real study's allocation comes from the specific property's own records.
By recovery period
| Recovery period | Components | Illustrative amount | Bonus-eligible here |
|---|---|---|---|
| 5-year | 13 | $725,000 | yes |
| 7-year | 1 | $10,000 | yes |
| 15-year | 7 | $690,000 | yes |
| 39-year (building) | 10 | $2,025,000 | no |
| Total allocated to depreciable property | 31 | $3,450,000 |
Component by component
| Component | Recovery period | Illustrative amount |
|---|---|---|
| Kitchen AppliancesAppliances and equipment in the kitchen are 5-year personal property. | 5-year | $300,000 |
| Walk-In CoolerWalk-in coolers and refrigeration equipment are 5-year personal property serving specific kitchen functions. | 5-year | $75,000 |
| Cabinetry and CountertopsCabinetry and built-in counters are 5-year property when installed as equipment serving food service. | 5-year | $65,000 |
| Hood and Exhaust SystemKitchen hood systems and equipment-serving ventilation are 5-year property. Even with heavy-duty demands, equipment-serving systems are not part of the structural shell. | 5-year | $55,000 |
| Dining FurnitureRestaurant dining tables and chairs are 5-year property under asset class 57.0. | 5-year | $40,000 |
| Drive-Thru Order and Payment EquipmentOrder-taking and payment equipment is 5-year property. The service window itself remains part of the building. | 5-year | $35,000 |
| Kitchen Equipment HookupsElectrical and plumbing runs serving specific kitchen equipment are 5-year property, not structural. | 5-year | $35,000 |
| Restaurant Sign FaceThe restaurant identity sign face is 5-year property; its supporting pole is separate. | 5-year | $35,000 |
| Booth and Counter FixturesBooth and counter fixtures are 5-year property in a restaurant. | 5-year | $30,000 |
| Decorative LightingSupplemental decorative lighting is 5-year property when other fixtures provide the building lighting needed for operation. | 5-year | $20,000 |
| Removable Dining DecorRemovable decorative panels are 5-year restaurant property; permanent wall finishes are building components. | 5-year | $15,000 |
| Menu BoardsInterior menu boards and displays are decorative personal property on the 5-year schedule. | 5-year | $15,000 |
| Window TreatmentsCurtains and window treatments are 5-year property, separate from the structural shell. | 5-year | $5,000 |
| Manager Office FurnitureThe manager desk, office chair and filing cabinet are 7-year office furniture. | 7-year | $10,000 |
| Parking Lot PavingParking lot paving is 15-year land improvement property, sitting outside the building's structural shell and separate from land itself, which never depreciates. | 15-year | $300,000 |
| Drive-Thru Lane PavingDrive-thru lane paving is 15-year land improvement property. A restaurant with a drive-thru lane often carries more paved surface relative to its building size than retail. | 15-year | $160,000 |
| Parking Lot CurbsCurbs are 15-year land improvement property, outside the building's structural shell. | 15-year | $75,000 |
| Parking Lot LightingExterior and site lighting, including parking lot poles and fixtures, are 15-year land improvements. | 15-year | $55,000 |
| Site LandscapingInstalled site landscaping is a 15-year land improvement. Land and general land preparation are excluded. | 15-year | $55,000 |
| Dumpster EnclosureDumpster enclosures and related site structures are 15-year land improvements outside the building shell. | 15-year | $25,000 |
| Sign Pole and Site FixturesThe freestanding sign pole is a 15-year land improvement. Its removable sign face is classified separately. | 15-year | $20,000 |
| Exterior WallsExterior walls are the building envelope and part of the structural shell on the 39-year commercial schedule. | 39-year | $410,000 |
| Building FramingStructural framing is the skeleton of the building and is part of the 39-year shell, never reclassified. | 39-year | $410,000 |
| Building FoundationFoundation supports the entire building and is part of the structural shell that stays on the 39-year commercial schedule. | 39-year | $350,000 |
| Core Building ElectricalCore electrical serving the whole building is structural and stays on the 39-year schedule. | 39-year | $190,000 |
| Storefront GlassWindows and storefront glass are part of the building's exterior envelope and structural shell. | 39-year | $170,000 |
| Structural RoofA structural roof (deck, framing, and membrane) is part of the building shell and stays on the 39-year commercial schedule. Cost segregation does not move a roof to 5-year property. | 39-year | $170,000 |
| Central HVAC SystemCentral HVAC that heats and cools the whole building is structural and depreciates on the 39-year commercial schedule. Even rooftop units feeding occupied space are structural. | 39-year | $145,000 |
| Core Plumbing and RestroomsPipes that serve the building's general use, including the restrooms and water heater, stay with the shell on the 39-year schedule. Only plumbing that exists solely to serve a piece of equipment can follow the equipment. | 39-year | $130,000 |
| Permanent Dining TilePermanent porcelain or ceramic dining tile is a building finish on the 39-year schedule. Removable carpet would be evaluated separately. | 39-year | $25,000 |
| Permanent Kitchen TilePermanently bonded kitchen tile is part of the 39-year building. | 39-year | $25,000 |