Cost Segregation Case Study for Funeral Home

Property Overview

This case study examines a funeral home property acquired in January 2017 for $1,600,000 (excluding land). The building spans 8,332 square feet, with an entire site footprint of 87,120 square feet. The cost segregation study was applied in the 2018 tax year, with a 30% tax rate and an 8% present value rate of return.

Unlike properties benefiting from bonus depreciation, this funeral home did not qualify for 100% bonus depreciation, making strategic asset reclassification through cost segregation essential for optimizing tax savings.

Property Type	Funeral Home
Purchase price(less land)	$1,600,000
Building sqft	8,332
Entire site sqft	87,120
Data acquired	January 2017
Tax year study applied	2018
Tax rate	30.0%
Present value rate of return	8%
Bonus depreciation	0%

Building Allocation After Study

Cost Segregation Study Benefits

By conducting a cost segregation study, the funeral home secured a first-year tax savings of $39,864, with a 10-year NPV of $79,430 and a remaining property life NPV of $66,804. When reinvested, these tax savings translate into a future value of $1,244,250.

The study reallocated building components into accelerated depreciation categories, with $208,000 classified as 5-year property, $371,200 as 15-year property, and $1,020,800 remaining under 39-year property. These adjustments allowed the owner to front-load depreciation deductions, improving cash flow and reducing taxable income.

Financial Benefits Achieved

Immediate Tax Savings	$39,864
NPV Over 10 Years	$79,430
NPV Over Remaining Life of Property	$66,804
Future Value of Invested Savings	$1,244,250

Optimizing CashFlow for Funeral Home Owners

Property Overview

Building Allocation After Study

Cost Segregation Study Benefits

Financial Benefits Achieved

More Case Studies

Car Dealership

Industrial Facility

Self-Storage

Funeral Home

Hotel

Manufacturing Facility

Mobile Home Park

Short-Term Rental/Airbnb

Restaurant

Retail Strip Center

Senior Living Facility

Bank

Fast Food Restaurant

Medical Facility

Event Center

Dental Office

Apartment Complex

Auto Repair Shop

Office Building

Distribution Center

High Rise

Talk to One of Our Specialists

Optimizing Cash
Flow for Funeral Home Owners