Cost Segregation For Restaurants

The tax benefits available to restaurant owners and fast food franchises can be significant by utilizing cost segregation. Restaurants ranging from fine dining to quick serve (QSR) are comprised of many property types that can be reclassified to shorter class lives for faster depreciation. 

In fact, as much as 40-50% of the property that makes up a restaurant can be accelerated to 5, 7, and 15 year property rather than waiting 39 years to gain the tax benefits.

If you have purchased, constructed, remodeled, or paid for leasehold improvements on your restaurant since 1987, and those costs exceeded $250,000, you may qualify for cost segregation.

Some examples of restaurant property that qualifies for a faster depreciation includes: audio visual equipment, bike racks, benches, billboards, carpeting, dedicated electrical, grease traps, landscaping, light fixtures that are decorative, playground equipment, plumbing that is dedicated to specialty equipment, restaurant furniture, signs, etc.  

We have conducted studies on hundreds of restaurants all across the United States, saving our clients millions of dollars. We have been providing engineer based studies since 2001. We hold a no-loss record with the IRS and our clients have never had to give money back. Please feel free to get a free projection of the savings available to you from cost segregation and then discuss it with your tax advisor.