A Cost Seg Study on a $3M Bank Property Could Yield About:
Year 1 – Cash Flow
Year 2 – Cash Flow
Year 3 – Cash Flow
Year 4 – Cash Flow
Year 5 – Cash Flow
Cost Segregation for Banks
Cost segregation is a tax strategy that creates massive deductions for tax payers who own bank properties.
Cost Seg is the correct and most accurate method to depreciate commercial property. When a business or individual purchases a bank, the costs of that project are generally broken down between land and building/clubhouse. Land is not depreciated but land improvements are depreciated. The building/clubhouse is depreciated over 39 yrs.
Cost Segregation is the method of identifying qualified real property and then depreciating that property in as little as 5, 7, and 15 years rather than the standard 39 years. This would include land improvements and assets that do not take away from the structural stability of building/clubhouse.
Does Your Property Qualify?
If you are subject to US federal and state tax laws and own a bank property and have done any of the following since 1987, you likely qualify for the massive tax benefits a Cost Segregation study can provide.
Purchased an existing bank
Constructed a new bank
Renovated, remodeled, restored or expanded an existing branch