A Cost Seg Study on a $10.2M Hotel/Motel Would 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 Hotels/Motels
Cost Segregation is a tax strategy that creates massive deductions for tax payers who own hotel or motel properties.
Cost Seg is the correct and most accurate method to depreciate commercial property. When a business or individual purchases a hotel/motel, the costs of that project are generally broken down between land and building. Land is not depreciated. The building 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 property assets that do not take away from the structural stability of a building.
Does Your Property Qualify?
If you are subject to US federal and state tax laws and own a hotel and/or motel 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 hotel/motel
Constructed a new hotel/motel
Renovated, remodeled, restored or expanded an existing hotel/motel
By accelerating the depreciation on building assets, owners of hotel/motel properties are able to gain huge tax benefits many years sooner and capitalize on the time value of their hard earned cash! Other benefits include:
Increased Cash Flow
Large Income Tax Deferrals
Substantial Catch-Up Depreciation
Bonus Depreciation Qualifications
Secure IRS Audit Protection
Suite-by-Suite Breakdowns of Building Costs
Verified Depreciation Schedules
Peace of Mind Knowing Your Depreciation Method is Correct