Cape Canaveral Cost Segregation

Salas O’Brien provided a cost segregation study on a new six-story hotel, which revealed significant tax-saving opportunities. The facility features 153 guestrooms, a swimming pool, an outdoor covered patio, a fitness center, two meeting rooms, a dining/lounge area, indoor and outdoor bars, and a commercial kitchen. Additionally, the site includes concrete driveways, parking areas, ornate landscaping, and a stormwater drainage system with below-grade retention tanks.

The analysis reclassified assets from the standard 27.5-year depreciation period into shorter recovery periods. This reclassification accelerated depreciation for 35.73% of the total property value, potentially generating substantial tax benefits for the owner. By leveraging cost segregation, the hotel owner can now enjoy increased cash flow in the early years of ownership, allowing for reinvestment in the property or other business ventures.