Cost Segregation for Mortuaries and Funeral Homes
A cost segregation study of funeral homes and mortuaries can find a ton of short-life depreciation that can be used to shield a property owner from income taxes. This includes office areas, gathering spaces, chapels, preparation areas, and other common areas in the interior of the building.
The exterior is also a strong source of high-dollar components. These can be parking lots, lighting, fencing, landscaping, signage, and more. With O’Connor on your side, you will be able to locate even more sources of depreciation. O’Connor will ensure that all rules mandated by the IRS for units of property and evidence are followed.
Cost segregation studies for funeral homes and mortuaries can easily bring in a return on investment of 3-1 or 5-1 in just the first year. This can be much higher with things like catch-up or bonus appreciation. Consult the table below to see some real businesses that have been helped by studies in the past.
Real Clients That Used Cost Segregation
| Depreciable Basis | Purchase price | Purchase Date | Year of Study | 1st Year Tax Savings | Year 1 Payback | Initial 5 Years Tax Savings | 5 Year Payback |
|---|---|---|---|---|---|---|---|
| $880,000 | 4/1/2015 | 2015 | $29,703 | $11,762 | 3.9:1 | $54,777 | 19.1:1 |
| $1,825,550 | 4/1/2007 | 2007 | $52,695 | $18,443 | 5.6:1 | $88,277 | 27.6:1 |
| $837,415 | 6/1/2015 | 2015 | $29,552 | $11,703 | 3.9:1 | $51,165 | 17.9:1 |
| $654,220 | 4/1/2007 | 2007 | $22,961 | $8,036 | 2.4:1 | $36,194 | 11.9:1 |
| $875,000 | 4/1/2007 | 2007 | $33,979 | $11,893 | 3.6:1 | $52,241 | 16.8:1 |
Results
* Results from studies using mid-quarter depreciation convention due to timing of purchase and other factors.
NOTE: The above listed tax savings are based on a 39.6% tax rate for the owner.
