Cost Segregation Case Study for a Manufacturing Facility

Our client owned a very large manufacturing facility that was used for spray painting new automobile bodies. The margins for this business were well over 30%. Needless to say, this created a very large tax liability. The owner had never heard of cost segregation but loved the idea when his CPA suggested doing a cost study. Our calculations created a six-figure tax deferral which the owner used to pay down debt on his newly acquired building.

Property type:

Manufacturing Facility

Date Aquired:

June 2020

Purchase Price (less land):

$5,431,703

First Year Tax Savings Benefit:

$670,299