Financial benefits of a cost segregation study

Financial Benefits of a Cost Segregation Study

Increased cash flow through tax benefits achieved from accelerated depreciation.

Increased net present value of tax savings achieved from accelerated depreciation.

Independent third-party analysis that will withstand Internal Revenue Service examination.

A client recently constructed 14 restaurants, at a total project cost of $7,898,200. The client did not allocate any of their costs into shorter depreciable tax lives and treated the entire $7,898,200 project cost as 39-year property.

The following table shows the actual financial benefits derived from a recently completed Cost Segregation study.

As you can see, a Cost Segregation study was enormously beneficial to this company. It doesn’t matter if you are building a new $40 million hotel or adding a $200,000 expansion.

“A dollar earned today is worth more than a dollar earned tomorrow”.