Cost Segregation Case Study: Data Center
Case Studies Cost Segregation for a Data Center A Comprehensive Source Advisors Case Study Cost Segregation for Data Centers In
Source Advisors
October 10, 2023
With the advancement in childcare facility standards, the tax considerations for premier daycare centers are now more complex than ever. Our case study showcases how Source Advisors utilized Cost Segregation to transform the construction expenses of a high-end daycare center into substantial tax benefits.
The subject property is an 11,700 square foot daycare center that was newly constructed in 2017 for $6,100,000.
The building is a onestory, wood frame structure, with Hardie Board siding, stone veneer, and a composite shingle roof. Interior finishes include vinyl plank flooring, extensive millwork and acoustical ceiling tiles.
The premium nature of the facility, coupled with its vast array of amenities and extensive site improvements, necessitated an exhaustive identification and allocation process to ensure maximum tax benefits.
There is one controlled access point into the daycare center. The building included classrooms, nurseries, office space, solar panels, laundry facilities, furnishings, and a kitchen area.
There were also site improvements such as asphalt paving, sidewalks, significant landscaping, playground equipment, fencing, artificial turf, site drainage, site lighting, and a CMU wall surrounding the playground.
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.
In conclusion, through an exhaustive Cost Segregation analysis, Source Advisors transformed the luxury daycare center’s comprehensive construction expenses into substantial tax savings.
Don’t leave money on the table. Contact Source Advisors to find out how Cost Segregation can work wonders for your daycare’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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