Last fall we had the privilege of meeting with the owners of DFW favorite, BoomerJacks restaurants. Well known in the Dallas/Fort Worth area, BoomerJacks are known for their amazing wings and chicken fingers.
On this fine, fall day, we met with Brent and Randy. We shared what cost segregation could do for their cash flow. Cost segregation simply identifies assets that qualify for accelerated depreciation. Some examples include cabinetry, millwork, dedicated plumbing (like in the bar area), and dedicated electrical (like in the kitchen). Other examples are decorative lighting, those “Big Ass Fans,” the fire pit on their deck, landscaping, parking lot, curbs, sidewalks, and more. BoomerJacks is loaded with all of the above.
The questions that arose next? What does accelerated depreciation do for us? And how does the IRS look at it? First, accelerated depreciation is the result of reclassifying assets. For BoomerJacks that meant from 39 years to 5 years inside. Outside BoomerJacks it meant from 39 years to 15 years. So, assets inside are called “tangible personal property.” Exterior assets are called “land improvements.” The IRS calls this application of accelerated depreciation, Modified Accelerated Cost Recovery System (MACRS).
Next? What does do for us, bottom line? I love that question!!! In the case for BoomerJacks, our initial benchmark estimate showed over $370,000 in accelerated depreciation for 2013. That equates to over $140,000 in federal income tax benefits. After we completed our site surveys and “crunched” the numbers, we delivered almost $1 MILLION in accelerated depreciation. That means almost $400,000 in federal income tax benefits! Wow! BoomerJacks owners pocketed some cool cash!
Do you own a restaurant? Are you in need of reducing or eliminating your income tax burden this year? Would you like a free benchmark estimate? It’s simple. Go to www.SegregationHoldingLimited.com. Complete the simple client questionnaire. Click submit. That’s it. Within 24 to 48 hours you will learn how much you qualify for. That’s correct. You will find out how much of an income tax credit or refund you can get. You will also see our fixed fee for service. In most instances, the tax refund is 10 times more than our fee. Sometimes even more!
Cost segregation delivers results every time Segregation Holding LLC applies it!
Questions? Give us a call at 972-865-9050 or 972-897-8019!