Case Studies

Cost Segregation for a Data Center

A Comprehensive Source Advisors Case Study

Cost Segregation for Data Centers

In the complex world of data center taxation, due to their intricate infrastructure, specialized knowledge is key. This case study highlights how Source Advisors effectively leveraged construction costs of a data center to realize notable tax savings.

r&d tax credits connecticut

The Source Advisors Solution

The Source Advisors Cost Segregation engineers analyzed the 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

Following this extensive examination, Source Advisors accomplished:

5% or

Reclassified as 15-year land improvements

44% or

Impressive as 5-year tangible personal property.

Due to the focus being solely on new construction, excluding the building shell, the results gravitated towards the higher end of expectations. Benefiting from its 2015 in-service date, the property is eligible for 50% bonus depreciation.

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Don’t leave money on the table. Contact Source Advisors to find out how Cost Segregation can work wonders for your 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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