CASE STUDY

Italian Restaurant

Jacksonville, FL

Highlights

In 2023, the owner of a newly built upscale Italian restaurant in Jacksonville, Florida was facing a familiar challenge—how to hold onto more capital and keep growth moving forward. With a cost basis of $2.6 million and Bonus Depreciation available, they turned to Cost Seg America to strengthen their tax position.

Using IRS Approach #1—our Detailed Engineering Approach from Actual Cost Records—we identified and reclassified eligible building components, finding $1,035,736 in first-year depreciation. That is over 15 times more than what straight-line depreciation would have allowed.

The result? Major tax savings and a surge in cash flow—giving the owner the flexibility to invest in staff, equipment, and future locations. For growing businesses, that kind of financial head start can make all the difference.

If you own commercial or rental property, Cost Seg America helps you keep more of your money working for you—starting today.

Statistics

$2,640,547

Cost Basis

$67,706

First-Year Depreciation (Straight-Line)

$1,035,736

First-Year Depreciation (Cost Seg + 60% Bonus)

$1,208,312

Total Accelerated Depreciation

46%

Depreciation Accelerated

Approach

Cost Seg America used the IRS’s gold-standard Approach 1 — the Detailed Engineering from Actual Cost Records outlined in the IRS Cost Segregation Audit Technique Guide — to accurately classify assets and maximize allowable depreciation.
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‍Breakdown of Reclassified Assets:

Comprehensive Data Collection – Our team gathers all relevant documents, including settlement statements, site plans, and architectural drawings, to create a complete asset profile.
On-Site Inspection – Our analysts conduct a detailed inspection to identify every critical component of the property.
Precise Asset Reclassification – Our team categorizes property components according to IRS guideline, ensuring compliance while accelerating depreciation schedules.
Optimized Depreciation Application – Our team's analysts apply MACRS to maximize tax deferrals and enhance cash flow.
Seamless CPA Collaboration – Our cost segregation report is delivered audit-ready, ensuring smooth integration into tax filings with full IRS defense.

With Cost Seg America, tax strategy is not just about compliance—it is about unlocking capital and fueling growth.
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💡 How This Property Was Reclassified

‍🟦 39-Year Property: $1,432,235 (68%)

🟩 15-Year Property: $532,098 (25%)

🟨 7-Year Property: $622 (0%)

🟥 5-Year Property: $675,592 (32%)

Breakdown of Reclassified Assets

39-Year Property (Building Structure)

Exterior walls, roofing system, load-bearing walls, windows and doors, foundation and slab.

15-Year Property (Land Improvements)

Outdoor signage, parking lot paving, landscaping and irrigation, exterior lighting, sidewalks and curbing.

7-Year Property (Telecom & Special Equipment)

Telephone and networking system.

5-Year Property (Short-Life Assets)

Commercial kitchen appliances (stoves, ovens, fryers, refrigerators), POS (Point-of-Sale) systems, decorative lighting, shelving and cabinetry, carpeting and flooring.

Summary

By partnering with Cost Seg America, this restaurant owner unlocked $1,035,736 in first-year depreciation—over 15x what straight-line would have delivered. Our team applied IRS Approach #1—the Detailed Engineering Approach using Actual Cost Records—to reclassify key components of the building, accelerating $1.2 million in depreciation and generating immediate tax deferrals and cash flow.

Cost segregation is a game-changing strategy for business owners who want to expand faster, reinvest smarter, and keep more capital working for them. If you have not done a study yet, you are leaving money on the table. Our audit-ready reports are built to stand up to scrutiny—and help you move forward with confidence.

At Cost Seg America, we are here to help you protect what you have built, maximize what is possible, and move forward with confidence.

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