Bank Cost Segregation

Case Study

Building of a bank

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

Security Camera
Door
Electrical Box
Window

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.