Case Study – Restaurant Renovations

The owner of the restaurant in question knew that converting his building from a previous restaurant to one with an updated concept would generate excellent results with a cost segregation study from CSSI. What he did not expect was to receive an extra $119,351 deduction for the assets he tore out and threw away.

This is a common situation for anyone who renovates a currently owned property. The fact remains that for virtually anyone who has renovated their property since 1987; it is highly likely that they have unknowingly left money on the table in the form of deductions.

To make matters worse, detailed reading of the new Tangible Property Regulations (aka Repair and Maintenance Regulations) indicates that deductions for property once removed may be denied in the future.