Cost Seg Building

A Blog About Tax Savings for Building Owners

Tag: Bonus Depreciation (Page 2 of 2)

Cost Segregation for Starbucks Retail Buildings

January 9, 2023 /
Starbucks buildings are great to study for cost segregation. The 5 year class life is better than most retail buildings. If it's a newer developed building, often times the 15 year class life (land developments) are also significant leading to great tax savings for the owners of these commercial buildings.

Cost segregation is a terrific strategy for any commercial building owner. New retail development tends to do quite well we are finding especially in part because of the land improvements to develop the property. New retail buildings for Starbucks for example are excellent for cost segregation.

With a new Starbucks not only do you tend to see great numbers from the 15 year class life category but also in the 5 year as well as the stores tend to be finished nicely.

If you’re interested in getting a no-obligation free estimate on your building, please don’t hesitate to reach out at 864-276-1448. I work all over the U.S.

Dentists Can Save $100,000 On Taxes By Using Cost Segregation

November 8, 2022 /
Photo Credit: John Murphy

Dental buildings have really come a long way. We are seeing more and more of them with beautiful design and finishing. Many now cost between $1.5 – $2.0 million. That’s a big expense for anyone and especially for dentists who may well be continuing to pay for dental school loans.

If the ownership of the operating business and the LLC that owns the dental building are the same, the dentist can group these entities the first year they put the building into service. That allows the operating LLC to take advantage of the depreciation generated by the real estate LLC. The tax savings can be significant.

Many of these buildings will see 20-30% of the building cost or basis able to be depreciated in the first year. For buildings placed into service starting in 2023, the bonus depreciation drops from 100% to 80% so please note that.

Recently we saved this dentist well over $100,000 on their income taxes when we did an engineering-based cost segregation study for them.

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