Cost Segregation Case Study: Apartments
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Source Advisors
October 10, 2023
This Food and Bev Manufacturer not only expanded its production horizons but also embarked on a journey of acquisitions and diversification. The complex nature of their expansion, combined with retail forays, presented a challenging financial landscape. Our case study demonstrates how Source Advisors used Cost Segregation to help this company unlock tax incentives.
This manufacturer is a corporation that began production in 1993. Beginning in 2008, the company started expanding their current facilities and acquiring other smaller producers.
The company’s growth trajectory encompassed both expansion of existing facilities and the acquisition of smaller producers. Furthermore, to mark their footprint across the nation, they established retail facilities and marketing offices. A mix of purchased and leased properties dotted their portfolio.
A critical oversight that occurred between 2008-2018 led to the incorrect classification of several assets including manufacturing personal property, Qualified Leasehold Improvement Property, Qualified Restaurant Property, Qualified Improvement Property, and various site improvements.
In 2019, the Source Advisors Cost Segregation engineers were engaged to do a full fixed asset review to identify opportunities to properly classify the costs of these transactions that spanned a 10-year period. Some of the properties required a full cost segregation study to properly allocate the capitalized costs using architectural plans with detailed cost files and invoices, while other required invoice reviews for proper classifications.
They conducted a thorough inspection of some properties where improvement projects were done. Key property personnel were also interviewed. A detailed report was delivered, identifying and documenting all the components that qualify for a shorter tax life.
Don’t leave money on the table. Contact Source Advisors to find out how Cost Segregation can work wonders for your 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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