This success story reviews an eye care facility located in Knoxville, Tennessee who reached out to our team for Cost Segregation and Fixed Asset Analysis.
View the entire case study here.
Approach
An eye care facility in Tennessee renovated an existing space and expanded the overall building footprint. In addition to blueprint analysis, our consultants performed a detailed on-site inspection of the property. Our goal was to maximize the amount of Qualified Improvement Property. Medical facilities are strong candidates for cost segregation studies due to the amount of specialty cabinetry, plumbing, and electrical, however, the QIP aspect made this study even more beneficial as the client received benefit on assets that would normally be considered real property. Our team was careful to separate any assets associated with the enlargement on the building’s footprint as these would not be eligible for QIP.
Benefit
Our team maximized potential savings and exceeded our original projections for the project, including:
- 67% of project’s assets reclassified out of real property to QIP, Land Improvements, and Personal Property.
- First year increased cash flow of 1.3 million, over 3x initial projections.
Indications of a Fixed Asset Opportunity
- Have you purchased or constructed a building with a cost in excess of $750,000?
- Have you made renovations to your facility?
- Are you maintaining depreciation records for many fixed assets?
Conclusion
Since 2014, McGuire Sponsel and LBMC have partnered to provide first-class service with integrity that brings value to LBMC’s clients. As a national specialty tax consulting firm, McGuire Sponsel offers Research & Development Tax Credits, Fixed Asset Services including Cost Segregation, Global Business Services and Credit and Incentive Services. Contact Mike Dalman for more information and to get started.
