North Texas Dentistry Volume 9 Issue 3 2019 ISSUE 3 DE | Page 19

square feet as a tenant in a mixed-use retail complex. You spent $100,000 to complete the build-out. Yes, this is a small exam- ple, but it’s a reality for many dentists just starting out. Cost seg- regation would typically reclassify about 40% of a dental office. Therefore, $40,000 would be accelerated into the 5-year tax life. If you are in the 37% federal tax bracket that would give you $14,800 in income tax credits. A cost segregation study of this size would cost about $3,000 depending on the specifics. Would you invest $3,000 to receive $14,800? If you are a seasoned dentist who owns your own building and invested $1.5 million, for example, your benefit is much more. A well-designed and attractive dental office will normally realize 45% to 55% in accelerated depreciation. At 45%, you would real- ize an additional $256,250 in income tax credits. If you have owned your building 5 to 7 years or so, you could qualify to receive about 50% of this as an income tax refund in the current tax year. Of course, your personal tax situation will impact your savings. (Always consult with your CPA or tax attorney as how best to apply the results of a cost segregation study). If you, as the DDS, DMD, or any other dental professional want to learn more about applying cost segregation to your specific circumstance; contact us. We provide a free benchmark analysis of your facility detailing the short life assets and how you will specifically benefit. Jeffrey M. Hobbs President and CEO Segregation Holding, LLC Mr. Hobbs has more than 38 years of management and financial consulting ex- perience with a special focus on forensi- cally engineered cost segregation studies for commercial property owners. His unique background as a forensic archi- tect from the University of Tennessee coupled with a lifetime of business own- ership gives him a competitive advantage in applying the benefits of cost segregation to virtually any commercial enterprise. Mr. Hobbs is one of the pioneers of independent cost segregation providers, an early member of The American Society of Cost Segrega- tion Professionals, The American Society of Tax Professionals, numer- ous national and regional associations, as well as a frequent and sought-after speaker on the subject of cost segregation. Mr. Hobbs leads seminars and continuing education classes on cost segregation for the accounting and commercial real estate industries. Mr. Hobbs has significant hands on experience with every aspect of cost segregation for a variety of commercial properties and circum- stances, dealing with properties from under $100,000 to $2,300,000,000 across America as well as globally. Mr. Hobbs may be reached at [email protected] or at [phone] www.northtexasdentistry.com | NORTH TEXAS DENTISTRY 19