Owners of bank buildings and branches are prime candidates for cost segregation studies because of the significant tax savings and financial advantages it can provide. It’s important to get a cost segregation study done so you have all the building components and systems identified. This is the case whether you continue to operate it as a bank or if you are repurposing the building. I have come across a lot of older bank buildings that are often being used as office space for a new tenant or owner.
Bank buildings are particularly well-suited for cost segregation studies. Their specialized design and features often qualify for accelerated depreciation, especially within the 5-year property class life. There are numerous specialty components that are unique to banking that offer valuable depreciation benefits.
Here are some key components and systems to identify for shorter class lives:
- Specialty electrical and plumbing systems
- Drive-up windows
- Interior glass windows
- Pneumatic tube systems
- Night depositories
- Safes and safe deposit boxes
- Vault doors
Even if you’ve converted a bank building into more traditional office space, many of these specialty items often remain. Reclassifying these assets to their proper 5-year lives, rather than leaving them as 39-year assets, can yield substantial tax savings. Additionally, if you end up removing some of these systems, if you have identified them, you might be able to take a partial asset disposition which would yield another excellent tax deduction.
Nationwide Service with Local Expertise
While I’m based in Greenville, SC, I study buildings like this all over the country. Whether your property is here in the Carolinas or across the country in California, it costs no more to engage my services. Our nationwide network of professional photographers ensures we can efficiently document your property to provide an accurate and thorough cost segregation analysis. The firm I represent, CSSI Services, works nationwide in all 50 states and we work on all types of buildings.
Let’s Talk
If you own a bank building—or any commercial property—and want to explore the tax-saving opportunities of cost segregation, give me a call. I’m happy to provide a no-cost, no-obligation estimate for your building. It’s a simple way to uncover hidden value and improve your bottom line.
