Reach New Peaks of Profitability with Cost Segregation for Hotels
Hotel owners face tight margins and rising costs—but there’s a smart way to boost cash flow: cost segregation. By accelerating depreciation on your property’s components, you can unlock major tax savings fast. MSC specializes in helping hotel operators maximize these benefits with tailored, audit-ready cost segregation studies.
Cash-In on Extensive Tax Benefits and Savings for Your Hotel Property
Wish you could save more money on taxes and boost your cash flow? Cost Segregation is a proven safe & effective way to save money on taxes.
Our team of cost segregation professionals has been in the industry for over 30 years, providing exceptional services to hotel establishments just like yours. With our full-service, in-house team, we analyze every component of your facility and expertly depreciate each asset, ensuring you capture extensive tax savings.
Ready to Save on Upfront Taxes and Improve Cash Flow?
Don’t let tax obligations hold back your hotel’s growth. Start maximizing your savings today—for immediate and long-term benefits. Fill out the form below to connect with our experts. We’ll show you how to reduce upfront taxes and boost cash flow, so you can stay focused on what you do best: running a successful hotel.
Experience You Can Trust = Strategic Partners
Our track record speaks for itself. Over the years, we have saved our clients an impressive $5.1 billion in tax benefits. With 24,500 completed cost segregation studies under our belt, our expertise in maximizing tax savings is unparalleled.
Comprehensive In-House Team = Hassle Free Experience
When you partner with us, you gain access to our dedicated team of engineering, tax, and consulting professionals. We handle every aspect of the cost segregation study process, making it hassle-free for you. From start to finish, we are committed to providing you with a seamless and supportive experience.
Industry Leaders = Authorities on New Tax Developments
We are proud to be recognized as leaders in cost segregation. Our experts are actively involved in shaping industry standards. You can trust that our strategies are cutting-edge and aligned with the latest regulations.
MSC Case Studies
- 2022 Acquisition
- $25.7M Depreciable Basis
- Resulted in over $2.6M in tax savings
- 2021 Improvements for a total of $858K
- Through a de minimis study, MSC was able to identify over $350K eligible for an immediate write off.
- Identified over $306K as Qualified Improvement Property during our analysis.
- Plus, Sec. 179 of the IRC allows for the immediate expensing of new business equipment that would be otherwise capitalized and depreciated.
- 2022 New Construction for $17.7M
- Utilized a de minimis study to identify over $1.7Meligible for immediate expensing
- With the remaining basis, MSC segregated over 32% toshorter depreciable lives
- Resulted in over $3.8M in depreciation for 2022
- Building was also eligible for 179D and was able to takean immediate deduction over $150K for qualifying energyefficient commercial property in
- Generated $1.2M in tax savings
- 2022 Improvements for $4.7M
- Segregated over 63% to shorter depreciable lives· Resulted in over $2.7M in additional depreciation in 2022
- Utilized Qualified Improvement Property (QIP), which allows for nonstructural interior improvements items to have a shorter depreciable life, making them bonus eligible. Through a de minimis study, MSC identified $1.3M in costs eligible for an immediate write off under this safe harbor.
- Identified $207K of costs that qualified as repairs under the Tangible property regulations thus allowing for immediate expensing of these costs in the first year
Frequently Asked Questions
Why Can't Your CPA Do This?
Cost segregation is a highly specialized division of accounting work that goes beyond the expertise of traditional CPAs. While your CPA may excel in general accounting tasks, our team specializes in identifying and allocating costs to specific assets within your hotel. This detailed analysis allows us to unlock hidden tax benefits and savings that your CPA may not be aware of. We often work with our client’s CPAs when it makes sense.
Why Hasn’t My CPA Recommended Cost Segregation?
Unfortunately, some CPAs still believe that cost segregation is a risky endeavor. What they don’t realize is that over the last 25 years, cost segregation has undergone a significant evolution into a safe and highly effective method to maximize your tax savings. Today, the IRS has provided clearer guidelines and expectations, offering a solid framework for this process.
At MSC, we stand at the forefront of the industry and have earned recognition from the IRS as a leading firm in cost segregation. We are often sought after to contribute to or advise on cost segregation matters. When it comes to trust and reputation, no other firm comes close.
With our cutting-edge approach and extensive experience, we ensure that cost segregation is no longer a risky venture but a massive strategic financial advantage for your hotel business.
What is the Cost Segregation Process Like?
Our team of experts, including engineers, tax specialists, and consultants, will conduct a comprehensive assessment of your hotel’s construction and renovation costs. We meticulously review each line item to determine which assets qualify for shorter depreciable lives. Here’s the process we follow: Thorough analysis of every component of your hotel facility.
- Identification of assets that qualify for accelerated depreciation
- Reclassification of assets into shorter depreciable lives
- Maximization of tax savings and upfront deductions
You’ll experience:
- Improvement of cash flow by freeing up capital.
- Seamless experience with our dedicated team of experts.
- Customized tax strategy tailored to your hotel's needs.
- Reduction of tax liabilities and increased profitability for your hotel business.
We met Ashley and the MSC team through our CPA in 2016. Ashley & Dave came and met with us, and we were able to review our entire portfolio and generate substantial tax deductions starting in 2016 and each year thereafter. We also worked with Ashley and the team on identifying assets we could write off that were being replaced during improvements. Ashley worked closely with our CPA throughout this entire process. It’s great to align with a group that not only you can rely on for quality Cost Segregation Studies but also other tax advice when purchasing and improving hospitality properties. We look forward to working with the MSC team in years to come.