Case Studies

Cost Segregation for a Fitness Center

A Comprehensive Source Advisors Case Study

Cost Segregation for Fitness Centers

Tax matters related to fitness facilities can be quite complex. This case study reveals how Source Advisors skillfully converted the purchase costs of a contemporary fitness center into notable tax advantages.

The Source Advisors Solution

Source Advisors Cost Segregation engineers were engaged to analyze the acquisition cost. They then applied a cost model to allocate the purchase price to various trades and building components.

Our engineers conducted a thorough inspection of the property where estimates were performed. Key property personnel were also interviewed. A detailed report was delivered, identifying and documenting all the components that qualify for a shorter tax life.

Financial Results

Following this extensive examination, Source Advisors accomplished:

10% or

Reclassified as 15-year land improvements

19% or

marked as 5-year tangible personal property.

The findings were in line with standard expectations for such a facility. While the indoor pool was seen as structural, its equipment was deemed eligible for personal property classification. Thanks to its acquisition date, the property can leverage 50% bonus depreciation under the PATH Act.

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Don’t leave money on the table. Contact Source Advisors to find out how Cost Segregation can work wonders for your bottom line.

Discover the Source Advisors Difference

Our industry experience with cost segregation has helped businesses claim billions of dollars in tax credits and incentives.

Our engineers excel at delineating construction costs to yield the highest tax benefits.

Our 40-year history of achieving substantial tax credit savings for clients across various industries is a testament to our commitment and expertise.

Our thorough reporting ensures every qualifying cost is adeptly reclassified.

Our dedicated support team is readily available to guide you through every step of the process, ensuring a smooth and stress-free experience.

Our recommendations stand in full compliance with tax legislations, offering clients unmatched peace of mind.

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