Funeral Homes and Mortuaries
Cost Segregation Studies
Funeral Homes and Mortuaries typically incorporate many short life components. Our cost segregation studies consider all office and common areas, gathering spaces and preparation areas within the building when identifying these items.
Additional opportunities are found in the lighted parking areas or parking structures, perimeter fencing, landscaping and building signage. Our studies also break out the IRS mandated Units of Property when considering the long-term components present in your building.
Our Funeral Home cost segregation studies typically pay back the cost of the study in the range of 3 to 1 to 5 to 1 in the first year of study use. Note the actual results highlighted in the table below. First year savings range from approximately $11,000 up to almost $20,000.
Sample of Actual Study Results
Depreciable Basis
$880,000
$1,825,550
$837,415
$654,220
$875,000
Purchase Date
4/1/2015
4/1/2007
6/1/2015
4/1/2007
4/1/2007
Year of Study
2015
2007
2015
2007
2007
1st Year Additional Depreciation
$29,703
$52,695
$29,552
$22,961
$33,979
1st Year Tax Savings
$11,762
$18,443
$11,703
$8,036
$11,893
Year 1 Payback
3.9:1
5.6:1
3.9:1
2.4:1
3.6:1
Initial 5 Years Tax Savings
$54,777
$88,277
$51,165
$36,194
$52,241
5 Year Payback
19.1:1
27.6:1
17.9:1
11.9:1
16.8:1
* Results from studies using mid-quarter depreciation convention due to timing of purchase and other factors.
NOTE: The above listed tax savings are based on a 39.6% tax rate for the owner.