Cost segregation is an advanced tax strategy that helps property owners accelerate depreciation, reduce taxable income, and improve cash flow. This case study illustrates the advantages of performing a cost segregation study for a Retail Store.
The goal of this study was to reclassify property components into shorter depreciation schedules to maximize tax savings and improve cash flow for the client.
The study involved:
5-Year Class Life Assets
15-Year Class Life Assets
39-Year Class Life Assets
This cost segregation study demonstrated the value of accelerated depreciation by reallocating 57% of the property’s total basis into shorter recovery periods. The immediate tax savings provided a significant boost in cash flow and long-term financial advantages.
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