Cost Segregation Benefits for Restaurant Owners

Apartments - Hotels - Manufacturers - Offices - Restaurants - Retail Plazas - Warehouses

A $1.5 million restaurant brings in a considerable amount of income every day. After food expenses and kitchen equipment maintenance expenses, there are still huge amounts of taxable income. Through Cost Segregation the restaurant will save $34,321 over straight-line depreciation.

Cash Flow Increased in year 1 $ 34,321
Cash Flow Increased in year 1-6 $ 151,455
Net Present Value (NPV) $ 123,700
Combined Tax Rate   41%
Net Present Value Factor   8%

 

Asset Class Percent
Reclassed
Depreciable
Basis
5 - Year Property 25%   375,000
7 - Year Property 3%   45,000
15 - Year Property 15%   225,000
39 - Year Property 57.0%   855,000
Total Real Property  $ 1,500,000