PROJECT PROFILE TAXES SAVED: 1,084,000* MEDICAL TECHNOLOGY BUILDING Engagement Overview: Bedford was engaged by the owner of a medical technology services building to conduct a cost segregation study following completion of new construction. The objective of the study was to identify assets that could be moved to shorter recovery periods in order to accelerate depreciation and defer taxes. Property Overview: The $10,327,000 four story building was designed and constructed by the current owners and immediately placed into service. The building has a footprint of approximately 12,700 SF with a total gross area of approximately 50,800 SF. The facility is located on a 3.26 acre site with an additional remote parking area constructed on a 2.70 acre site. Engineering Process: Prior to the field activities, our engineers closely examined all relevant construction documents, payment requisitions and other related data to determine the cost basis for every component in the building. engineers on-site study to identify and photograph all assets eligible for accelerated depreciation. Following the site visit, our team (site engineer, costing engineer and tax specialist) then identified assets that qualified as IRC Section 1245 Property and land improvements as well as pricing the entire base-building structures and other improvements remaining as Our accelerated depreciation study rescheduled $3,270,000 or 32% of the assets to 5 and 15-year property. As a result, the property owner’s tax savings is projected to be $1,084,000 over the next 10 years with over $600,000 in tax savings available for the current tax year. * represents the 10-yr. net present value savings – using an 8% discount rate.

Speak Your Mind