Cost Segregation Studies are the key to lucrative tax benefits for the hospitality industry.
Hotel owners that have performed a Cost Segregation Study (CSS) on their property are aware of the lucrative savings on the other side of this tax strategy. Not only can CSS benefit owners of newly constructed hotels, but it can also greatly benefit property owners with buildings constructed, purchased or remodeled after 1987.
The study identifies fixed assets and their costs, determines areas of savings, and unlocks otherwise hidden cash flow that can be invested directly back into the business. This can be especially beneficial when a business is in its early days, as more cash on hand, lower business credit risk, and lower insurance premiums are all possible perks of the study.
Tap Into Your Hotel Building Savings
Cost segregation leads to increased cash flow by accelerating deductions and deferring federal and state income taxes. The study restructures the depreciation of commercial properties by re-classifying assets from a 39-year depreciable life to a 5, 7, or 15-year depreciable life. Our team of engineers are certified in all 50 states and are prepared to help you obtain top-dollar savings.
Hotel Assets for Personal Property Can Include:
- Electrical Systems – Circuit breaker panels, transformers, branch circuits and meters.
- Power Generators – Thermal generating plants, cogeneration, nuclear plants, fossil-fueled, combined-cycle and biomass plants.
- Decorative Lighting – Hanging light fixtures, chandeliers and pendants, wall sconces and wall lights, and accent lighting.
- Plumbing Systems – Plumbing drainage venting, fuel gas piping, potable cold and hot water supply and hydronics.
- Flooring choices – Hardwood, engineered wood, laminate, cork and linoleum.
The Difference the National Tax Group Team Makes
A cost segregation study is one of the most overlooked, yet most profitable choices a hotel owner can make. Our team of experts has teamed up with hundreds of hotel owners to enhance their savings and increase their cash flow. Are you ready to save significant tax dollars? Contact us today for a free assessment of your assets.