Franchise Cost Segregation Studies
HORNE's franchise cost segregation specialists work with you
through this process aimed at the goal of increasing your cash flow
today and implementing immediate tax savings. Ideal for franchisees
who are performing construction or renovations, purchasing a
building, or who already own a building, HORNE's team works to
reclassify certain building costs--accelerating depreciation and
increasing cash flow.
The HORNE Approach
A franchise cost segregation study is an under-utilized
tax-planning tool that involves several steps. HORNE's
experienced team works to ensure your study is conducted properly
in order to give you the maximum return on your investment. The
HORNE approach incorporates multiple components, including:
- Review of blueprint set and specifications
- Performance of an on-site tour to identify specific
characteristics of the project
- Creation of cost analysis and assignment of appropriate value
to personal and real property
- Assignment of depreciable life based upon the most recent IRS
guidance
- Research and consultation with tax professionals within our
firm
- Review of findings to ensure your understanding and agreement
with the positions reflected in the study
How It Works
Through the process of conducting a franchise cost segregation
study, personal property assets are distinguished from real
property assets which depreciate over a period of 39 years. HORNE's
professional franchise consultants are qualified to reclassify
those personal property assets into class lives of five, seven or
15 years, increasing depreciation expense and reducing taxable
income now. The immediate correction or "catch up" amount can go
back as far as 1987 and is applied to a single (current) tax year
as an acceleration of depreciation expense, increasing cash
flow.
For more information on a franchise cost segregation study for
your franchise, email franchise@horne-llp.com
.
Do you own a business that's not a franchise? HORNE provides comprehensive tax
services for all types of businesses.