Resort and Waterpark Cost Segregation

Salas O’Brien partnered with Splash RV Resort and Waterpark to provide a cost segregation study on a newly constructed property revealed significant tax-saving opportunities. The park contains multiple buildings, including a welcome center and administration building, three bathhouses, a warehouse, an entrance gate booth, a small maintenance building, a lodge building, and an open-air pavilion. The analysis involved reclassifying assets from the standard 39-year depreciation period into shorter recovery periods. The reclassification accelerated depreciation for 67.5% of the total property value of $23 million.

By leveraging cost segregation, the resort owner can now enjoy increased cash flow in the early years of ownership. The study’s results allow for substantial tax benefits, enabling reinvestment in the property or other business ventures and ultimately enhancing the resort’s profitability and
guest experience.