Building Types | Cost Segregation

Bank Buildings

Cost Segregation for Bank Buildings

Cost segregation is an invaluable tax strategy for bank buildings. By dissecting the property into its various components, banks can allocate specific values to individual assets. The process differentiates between personal property (items with shorter depreciation timelines like furniture and fixtures) and real property (the building structure itself with a longer depreciation life).

The magic of cost segregation lies in its ability to accelerate the depreciation on qualifying components. By identifying assets within the bank building that can be depreciated over a shorter period, banks can front-load their depreciation deductions, leading to substantial current-year tax reductions.

Why Banks Stand Out

Bank buildings are more than just architectural marvels; they’re potential gold mines for cost segregation opportunities. Dive into the intricate world of bank-specific systems and components to uncover significant tax savings.

Bank buildings are replete with unique features such as bank vault doors, teller windows, and pneumatic tube systems. These aren’t just operational essentials; they’re opportunities for accelerated depreciation.

The Rev. Rul. 65-79, 1965-1 C.B. 26 highlighted that certain features, like walk-up and drive-up teller’s windows, although attached, don’t qualify as structural components of the building. Their removal doesn’t impact the bank’s operations, making them ripe for cost segregation benefits.

Modern banks go above and beyond when it comes to security. Think video surveillance, door and window alarm sensors, silent alarm triggers in cash drawers, and more. Each of these systems offers potential savings when analyzed from a cost segregation perspective.

Substantial Savings Potential

On average, accelerating depreciation on 18% to 32% of the capitalized costs is achievable. Factors like the bank’s type (branch or main), level of security, number of drive-up systems, finish quality, and site improvements play a role in determining these percentages.

Don’t let potential savings remain hidden in your bank building’s walls. Explore cost segregation opportunities today and reinvest the savings into further enhancing your banking services. Whether you’re operating a local branch or a primary banking hub, the chances to uncover cost benefits are there, waiting for you.

Discover the untapped financial potential within your Residential Rental Property through cost segregation. Uncover substantial tax savings and reinvest in elevating your residential offerings, whether it’s transforming a modern tower or enhancing a traditional setup. By harnessing the power of cost segregation, you’ll optimize costs and elevate your property’s bottom line.

r&d tax credits connecticut

Take Advantage of Cost Segregation with Source Advisors

Cost segregation is a strategic approach for bank owners looking to optimize their tax benefits and improve their bottom line. By appropriately leveraging this strategy, property owners can significantly enhance their cash flow, ensuring they have the resources to maintain, upgrade, or expand their properties, ultimately maximizing their return on investment. Before embarking on a cost segregation study, it’s advisable to consult with professionals who have experience in both the real estate and tax sectors to ensure compliance and optimization.

Download Our
Apartment Buildings
Case Study

"*" indicates required fields

Your Name*
Your Email Address*

Highlights in
the Case Study

Combined Federal and State R&D tax Credit of over $130,000.

With over 40 years of experience in metal fabrication, this company continues to develop metal fatigue and failure mitigation techniques, serving the aerospace, automotive, biomedical, chemical, defense, energy, fitness, nuclear, oil & gas and rail industries.