We are excited to announce the results from one of our latest success stories. Kwik Kar Lube located in Lewisville, Texas came to us to see how our cost segregation could potentially help them save a tremendous amount of money in the years to come. The business was purchased in February of 2011 and has been in the green ever since. They learned about our program and wanted to obtain their free analysis and due to the results we achieved they could not be happier.
Cost segregation is a complex formula that helps businesses who are making money save even more money on their federal income taxes. Our team of highly trained professionals will work one on one with the business owner to go over the process of how cost segregation works and how our program can work for each businesses. Generally speaking, cost segregation is the process of reallocating assets from a 39.5 year depreciation class to a 15 and/or 5 year depreciation class. This process generally allows business owners to save an enormous amount of money on their federal income tax returns.
At first glance, our team gave an original estimate of a federal income tax refund of $31,000. Our cost segregation study took 45 days to complete and Kwik Kar Lube was thrilled with the end results. We were able to obtain a federal income tax refund of $84,867 for 2013 and an additional tax refund of $40,000 for 2014- 2017. We were able to reallocate more assets than we original thought which resulted in the client being able to save even more money on their taxes. We attained 15.4% on the 5 year class when it comes to relocating assets and 20.2% on the 15 year.
Some of the assets that qualify to be reallocated using cost segregation include (but not limited to) dedicated electrical and plumbing, carpeting & VCT flooring, cabinetry, security system, curbs and sidewalks, and much more. We will go over all your assets to correctly ascertain those that qualify. The assets will fall under IRC Sec. 1245 or Sec. 1250 and that will depend upon their location and application.
We completed the study and delivered powerful results. Cost segregation delivers results every time it’s applied when you work with us…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.
Contact us at 972-897-8019.
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