Bank Cost Segregation
Case Study
No Cost Segregation Study
Total Depreciation
$17,933
Cost Segregation Study
Total Depreciation
$741,963
5 Year Assets
7 Year Assets
39 Year Assets
Total Tax Benefits
$217,209
Property Type
Bank
#Of Floors
1
Building Cost
$1,856,046
Square Feet
9,453
Lot Size
3.96
TOP DEPRECIATED ASSETS
Why is Cost Segregation Beneficial to Banks?
Shorter Life Assets
Banks typically have significant investments in buildings, and cost segregation allows them to identify and reclassify certain components for accelerated depreciation.
Features such as lighting, flooring, and specialized architectural elements can be depreciated over shorter recovery periods (e.g., 5, 7, or 15 years), resulting in increased tax deductions in the earlier years of ownership.
Leasehold Improvements
For banks leasing space, the costs associated with leasehold improvements can be identified and segregated for optimal depreciation schedules and tax benefits.
Security Systems & Cameras
Security is a critical concern for banks, and they invest in sophisticated security systems, surveillance cameras, and access control systems.
The costs associated with these security features can be identified and reclassified through cost segregation, leading to accelerated depreciation and tax savings.
Branch Improvements & Renovations
Banks heavily rely on technology for various operations, including online banking, data storage, and security systems.
Cost segregation helps differentiate the hardware and software associated with these systems, allowing for accelerated depreciation in line with the shorter life cycle of technology assets.
Technology Infrastructure
Banks often make improvements or renovations to branches to enhance customer experience, update technology, or comply with regulatory requirements.
Cost segregation can be applied to identify and segregate the costs associated with these improvements, leading to faster depreciation and increased tax benefits.
ATMs & Drive-Through Facilities
The costs associated with ATMs, drive-through facilities, and related equipment can be identified and reclassified for accelerated depreciation through cost segregation.