Case Studies

Cost Segregation for a Distribution Center

A Comprehensive Source Advisors Case Study

Cost Segregation for Distribution Centers

In the world of distribution centers, having a custom-built facility can lead to some interesting tax situations. See how Source Advisors used Cost Segregation to tap into great tax benefits for a chemical distribution center.

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:

31% or

categorized as 15-year land improvements.

13% or

recognized as 5-year tangible personal property.

The findings for this distribution center leaned towards the higher end of the typical range, credited to its distinct features. Since the construction was substantially underway before 09/27/20, the personal property and land improvements earned eligibility for 40% bonus depreciation under the PATH Act.

Request a Cost Segregation Proposal

Get Started Today!

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.

Related Case Studies