Case Studies

Cost Segregation for a High-End Daycare Center

A Comprehensive Source Advisors Case Study

Cost Segregation for Daycare Centers

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 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:

26% or

Reclassified as 15-year land improvements.

19% or

Additional designated as 5-year tangible personal property.

Notably, the findings for this property surpassed standard expectations for similar building types. This result is attributed to the daycare center's inclusion of elements like the playground equipment, interior decor, and the innovative solar power system. As a result, the property is now eligible for 50% bonus depreciation under the PATH Act.

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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.

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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