Sun Valley Lodge is the kind of property that makes site visits easy to schedule. When the ownership group invested in a major remodel and new spa addition, we were brought in to maximize their tax position through cost segregation.
The result? 42.93% of project costs reclassified into accelerated depreciation categories, with over a third qualifying for 5-year treatment. That’s substantial first-year tax relief on a multi-million-dollar capital investment — cash that stayed with the property instead of going to the IRS.
Hospitality properties with high-end finishes and specialty spaces like spas offer particularly strong opportunities for cost segregation. The distinction between structural components and qualifying personal property can mean hundreds of thousands in immediate deductions.
If you haven’t visited Sun Valley Lodge, add it to your list. And if you’re investing in hospitality real estate at this level, make sure cost segregation is part of your tax strategy from day one.