National Tax Group works with hotel and motel owners to perform cost segregation studies. Hotel properties are typically a 39 year depreciable asset. Our studies are able to reallocate 30% of the total assets to 5 and 15 year life classes.
Our engineers and tax experts performing the cost segregation studies go by the Modified Accelerated Cost Recovery System (MACRS), which is the method of depreciation that is mandated by the IRS. The MACRS is applied to short-life assets, which accelerates depreciation and reduces the tax burden of the hotel owner.
Hotels that have been purchased or constructed since January 1st, 1987 qualify for accelerated depreciation. Any updates or renovations since the hotel’s purchase or construction can also qualify for depreciation.
Personal property hotel assets can include
- Flooring choices
- Decorative lightning
- Electrical systems
- Plumbing systems
- Power generators
- Security systems
- Parking lots