A peer-reviewed journal that offers evidence-based clinical information and continuing education for dentists.

How Dentists Can Save Money on a New Office with a Cost Segregation Study


Dentists who have previously built or are considering building a new office could benefit from a cost segregation study to maximize any available tax deductions. A cost segregation study can be done on any property that is producing income and can accelerate your depreciation deductions, allowing you to get more money in your pocket right away. This way, you’ll pay less in taxes and improve your cash flow.

In this episode of The Art of Dental Finance and Management podcast, Art meets with Mark Rogers, Eide Bailly’s Principal-in-Charge of Fixed Asset Services, to discuss how cost segregation studies can help dentists save money on a new office build. With a team of CPAs, construction managers, architects and engineers, the Fixed Asset Services team looks at how to maximize deductions. Especially with the advent of the Tax Cut and Jobs Act and the CARES Act, there are even more opportunities to take advantage of available tax savings.

A cost segregation study breaks out a building into different components, trying to find some lower life property within it in order to get the standard 39-year depreciation schedule into a five-year, seven-year or 15-year period to secure bonus depreciation. For example, if you put a component into five-year period and get a 50% bonus, you can take half of your five-year cost in year one.

Reach out to Art if you have any questions regarding dental finance and management for your dental practice.

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