Cost Segregation benefits hotel owners in the tens of thousands or more.
Many hospitality industry owners and employees continue to struggle in the wake of the COVID-19 epidemic, facing a freefall in revenue as guest rooms continue to stay empty week after week. Feeling the pressure of a potential upcoming economic recession, with businesses searching for new potential cash flows previously missed and overlooked.
While many commercial properties can generate tax breaks, Cost Segregation is a lesser-known strategy for maximizing property owners’ bottom line. The process works by having Cost Segregation specialists identify commercial building components – such as amenities, fixtures, flooring or HVAC units – and reclassifying their depreciation timeline to much shorter periods according to IRS guidelines. This detailed procedure subsequently lowers reportable income and income taxes, yielding a significant increase in tax benefits for hoteliers.
For hospitality industry owners, Cost Segregation can be an essential component to their cost-saving plan during this unprecedented time of uncertainty. If you have additional questions about how Cost Segregation can enhance your bottom line, National Tax Group Cost Segregation specialists will speak with you and start the process of obtaining your lucrative savings. Contact us for your free assessment today.