Banking / Financial Assets
Cost Segregation
Banks and other Financial Assets lend themselves well to the use of cost segregation. Lushly appointed lobbies and offices, along with vaults and safety deposit box enclosures provide ample five year life assets, while parking areas, drive-through lanes and landscaping supply 15 year life assets.
Our studies also break out the IRS mandated Units of Property when considering the long-term components present in your building.
Banking and Financial cost segregation studies typically pay back the cost of the study in the range of 4 to 1 up to over 40 to 1 in the first year of study use.
Note the actual results highlighted in the table below. First year savings range from roughly $30,000 up to more than $110,000!
Sample of Actual Study Results
Depreciable Basis
$4,136,991
$2,991,101
$14,000,000
$1,873,373
$1,273,477
Purchase Date
5/1/2015
12/1/2014
7/1/2011
5/1/2016
1/1/2012
Year of Study
2015
2014
2011
2016
2012
1st Year Additional Depreciation
$123,502
$175,877
$269,410
$75,770
$32,658
1st Year Tax Savings
$48,728
$69,647
$112,748
$30,005
$11,430
Year 1 Payback
16.1:1
23.1:1
43.1:1
9.9:1
3.9:1
Initial 5 Years Tax Savings
$238,063
$280,474
$459,380
$137,974
$61,831
5 Year Payback
79.8:1
93.9:1
177.0:1
46.7:1
22.1:1
* Results from “Catch Up” studies which allow the owner of properties purchased in previous
tax years to benefit from cost segregation in the current tax year without filing amended returns.
NOTE: The above listed tax savings are based on a 39.6% tax rate for the owner.