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Cost Segregation Helps a Dental Office save $102,000 in Federal Income Taxes

Posted on January 13, 2014 by Jeff Hobbs

Cost Segregation Helps a Dental Office save $102,000 in federal income!

Jody Cremer DDS Office FacadeWe simply love sharing our stories of success when it comes to helping a dental office keep more of their hard earned money. Recently, Segregation Holding was by Dr. Jody Cremer DDS of Pediatric & Adolescent Dentistry to see if our cost segregation study could help save money. Dr. Cremer, located in North Richland HIlls, engaged SHL to conduct a cost segregation study of his dental office building. We jumped at the chance to help and, as always, our results far exceeded the client's expectations.

dentist-panoramaA cost segregation study is the process of identifying all assets that will qualify for a shorter depreciation life. Generally speaking, most assets are assigned the standard 39 year depreciation. This is where a cost segregation study will come into play. Many interior assets can be reallocated to tangible personal property. So, it generally qualifies for a 5 0r 7 year accelerated depreciation period. Land improvements qualify for an accelerated depreciation of 15 years. The process of accelerating depreciation is the IRS method for tax reduction called MACRS. This was the case with Pediatric & Adolescent Dentistry.

ID-100175816After our project engineer went to the dental office and began identifying qualifying assets, he determined our initial benchmark estimate was conservative. It showed a potential reallocation of depreciable assets equaling $190,762. The projected tax benefit for the first year alone was over $67,000. No doubt Dr. Cremer was pleased with this good news and excited for the study to be completed. It was when we got back to the office and began the number crunching process that the engineer's on-site assessment was found to be right! SHL would indeed exceed our initial benchmark.

Our final results showed the reallocation of assets for the 5- & 15-year periods would result in additional depreciation of over $290,000. This result gave Dr. Cremer over $102,000 in current year income tax benefits.

Why not let our team of experienced engineers help your dental office today? We take pride in working one on one with our clients and getting them the largest savings possible. We are so confident that our methods will work that we even offer a guarantee. So, go ahead and request your free quote today and let us help your business today!

Contact us at 972-897-8019 or 443-Cost-Seg.

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