Auto Dealerships & Service Centers
Auto Dealerships and Service Centers usually provide significant 15 year depreciable assets! For dealerships, expansive parking areas, coupled with perimeter fencing and extensive exterior lighting systems dominate the 15 year life assets, while well-appointed office/sales space provides a selection of 5 year life assets. Service Centers, with similar if smaller scale exterior appointments, also provide shorter life assets to be found in offices, waiting areas and service bays.
In addition to all extant short life assets, our studies break out the IRS mandated Units of Property when considering the long-term components present in your building.
Auto Dealerships and Service Center studies typically pay back the cost of the study in the range of 2 to 1 up to more than 20 to 1 in the first year of study use. Note the actual results highlighted in the table below. First year savings range from roughly $10,000 up to in excess of $75,000.
Sample of Actual Study Results
Year of Study
1st Year Additional Depreciation
1st Year Tax Savings
Year 1 Payback
Initial 5 Years Tax Savings
5 Year Payback
* 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.