Cost Segregation Case Study: Apartments
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Source Advisors
October 10, 2023
The tax landscape for auto dealerships is filled with opportunities and pitfalls. This case study explores how Source Advisors utilized Cost Segregation to turn a newly constructed auto dealership’s building costs into a series of significant tax advantages.
The subject of our case study is a one-story, steel-framed auto dealership that was constructed and placed into service in 2019 at a cost of $9,200,000.
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The building features 10 service bays, a customer waiting area, a showroom, a parts department with a metal plank mezzanine, and administrative offices. Additionally, site improvements like asphalt paving, landscaping, fencing, and lighting were implemented.
Given the complex nature of the building and site improvements, the challenge lay in identifying and properly allocating costs that could be reclassified under shorter tax life categories to maximize tax benefits.
The Source Advisors Cost Segregation engineers were engaged to analyze the actual construction costs, in the form of contractor invoices, and allocated the cost detail to various trades and building components.
Our engineers conducted detailed estimates from the construction drawings and augmented those findings with additional estimates performed during the site visit of the property. Key property personnel were also interviewed and a detailed report was delivered, identifying and documenting all of the components that qualify for a shorter tax life.
Through detailed Cost Segregation analysis, Source Advisors turned complex construction costs into massive tax savings for the auto dealership.
Don’t leave money on the table. Contact Source Advisors to find out how Cost Segregation can work wonders for your auto dealership’s bottom line.
Our industry experience with cost segregation has helped businesses claim billions of dollars in tax credits and incentives.
Our engineers excel at delineating construction costs to yield the highest tax benefits.
Our 40-year history of achieving substantial tax credit savings for clients across various industries is a testament to our commitment and expertise.
Our thorough reporting ensures every qualifying cost is adeptly reclassified.
Our dedicated support team is readily available to guide you through every step of the process, ensuring a smooth and stress-free experience.
Our recommendations stand in full compliance with tax legislations, offering clients unmatched peace of mind.
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