Dr. Brian Dorman, DMD, recently came to us at Segregation Holding to inquire how accelerated depreciation using a cost segregation study could benefit his dental practice. The Center for Oral & Facial Surgery located in Anthem, AZ was looking for a way to reduce their income tax burden as well as increase their cash flow. By lowering the tax burden, the Center for Oral & Facial Surgery will be able to keep more of their hard earned money and use that money for continued improvements and other business related expenses. Our professional team of analysts and engineers were eager to help and show Dr. Dorman how accelerated depreciation using a cost segregation study done by Segregation Holding would deliver amazing results.
At first glance, our site survey and original benchmark analysis showed that the Center for Oral & Facial Surgery would be able to accelerate over $88,000 a year. By reallocating all qualified assets to an accelerated depreciation schedule of 5 and 15 years using MACRS method Dr. Dorman would maximize his tax savings. No question about it, Dr. Dorman was thrilled with these numbers and excited to start the process of applying cost segregation. It was during the complicated number-crunching process that our team discovered even more ways to lower the income tax burden. Our post-study results revealed $122,000 in accelerated depreciation using both and 5 and 15 year asset categories. This is almost 40% more than we originally estimated. This substantial savings will increase the cash flow and allow the dental clinic to keep more of their money. As if that was not enough, our team was also able to get Dr. Dorman a $48,000 tax refund on his 2012 tax return.
A cost segregation study is a complex tax strategy using accelerated depreciation under MACRS. This helps businesses who are making money save even more on their federal income taxes. This obviously also helps to increase the daily cash flow. The truth of the matter is an engineered cost segregation study performed by Segregation Holding will always deliver positive results. Of course, we make the process simple and easy. By handling all the paperwork for you we ensure that your cost segregation study is done following the guidelines set forth by the IRS. At Segregation Holding Limited we work with you one on one. We are always available to answer any questions about accelerated depreciation, MACRS, cost segregation, or any other tax-related topic.
We completed the study and delivered powerful results. Cost segregation studies done by Segregation Holding will deliver results every time as long as your business is a brick and mortar facility and is profitable. Simply give us a call today and learn how we can help your business.
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