Case Studies

Cost Segregation for Auto Dealerships

A Comprehensive Source Advisors Case Study

Cost Segregation for Auto Dealerships

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 Source Advisors Solution

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.

Financial Results

After our meticulous study, Source Advisors was able to achieve the following:

26% or

Reclassified as 15-year land improvements

20% or

Reclassified as 5-year tangible personal property

Thanks to these reclassifications, the dealership is eligible for 100% bonus depreciation under the Tax Cuts and Jobs Act.

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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.

Discover the Source Advisors Difference

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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