Building Types | Cost Segregation

Fitness Centers

In the dynamic realm of fitness centers, the varied assortment of gym equipment, wellness amenities, and modern facilities serves as more than just a draw for health-conscious clientele; it’s a reservoir of untapped financial opportunities. From state-of-the-art cardio machines to specialized yoga studios and swimming pools, each asset has its own specific depreciation schedule.

Cost segregation emerges as a key strategy for fitness center owners, allowing them to maximize tax benefits and enhance cash flow, thereby facilitating ongoing investment in cutting-edge amenities and top-notch customer experience.

Cost Segregation for Fitness Centers

Fitness centers are more than just havens for wellness and self-improvement; they are also ripe for cost segregation benefits. With a diverse range of assets from state-of-the-art gym equipment to specialized facilities like spas and pools, fitness centers offer an array of opportunities for tax savings.

High-end fitness centers go above and beyond with amenities like pools, steam rooms, spas, saunas, daycare facilities, and more. Each of these features represents an opportunity for accelerated depreciation.

The unique operational requirements of fitness centers call for specialized electrical, plumbing, and HVAC systems, all of which are potential targets for cost segregation benefits.

From large open spaces for cardio and weightlifting to smaller, specialized rooms for classes and therapies, the varying functionalities within a fitness center offer multiple avenues for tax savings.

Substantial Savings Potential

Accelerating the depreciation on 20% to 30% of the capitalized costs is typically achievable. Factors such as the range of amenities offered and the extent of site improvements will influence this percentage.

r&d tax credits connecticut

Take Advantage of Cost Segregation with Source Advisors

Cost segregation is a strategic approach for fitness center 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.

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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.