Restaurant owners who are building or remodeling their property can reduce their federal tax liabilities through a cross segregation study. Restaurant owners can benefit from Cost Segregation studies by increasing their cash flow and lowering federal tax burdens.
Cost segregation studies are a strategic tax planning tool that is completed to maximize federal income tax depreciation deductions by identifying fixed assets and their costs. It allows for restaurant owners to take their property and have it be categorized into acquisition or construction costs and then applied to the appropriate IRS tax credit. Through a cost segregation study, properties can be reclassified from a standard 39-year depreciable life to a 5, 7, or 15-year depreciable life, which enhances federal tax credit savings, and improves cash flow.
Does My Restaurant Qualify?
Almost any property from any company or industry can benefit from a cost segregation study, but restaurants are ideal property candidates. National Tax Group has performed cost segregation studies for a variety of enterprises over the last 20 years and has saved our restaurant owners millions in tax incentives.
Qualifying items that can be reallocated include:
- Carpeting, vinyl, and epoxy flooring
- Canopies and awnings
- Kitchen equipment gas systems
- Sound systems
- Equipment related electrical and plumbing connections
- Decorative light fixtures
- Kitchen storage and preparation equipment
Cost Segregation is often most lucrative on properties that have spent over $1 Million on the property and its improvements.
Why Should I Invest in a Cost Segregation Study?
By taking advantage of the benefits a Cost Segregation Study can provide your business, the acceleration of depreciation can give massive tax benefits years sooner than expected. This allows restaurant owners to capitalize on their value and start the new decade by increasing their cash-flow.
Give us a call today! Our team of Cost Segregation experts will give you a free assessment today to see if your properties qualify! With little work on your part, you could start 2020 off with more money to invest back into your business.