Without a cost segregation study, this $970,000.00 restaurant in Boiling Springs, South Carolina, purchased in 2019, would have generated first-year depreciation of approximately $24,800. By applying a cost segregation study, the property investors accelerated depreciation for the first year to approximately $568,200. Resulting in $543,349.95 in first-year tax savings.
This accelerated depreciation strategy allows the property investors to immediately reduce their tax liability and in turn, increase their bottom line by offsetting income. This detailed engineering-based Cost Segregation Study will also be used to help maximize improvements and renovation in addition to being used for potential savings with insurance premium costs and property tax appeals.
