Cost Segregation Study

Cost Segregation Study Increases Distillery’s Cash Flow by $1.8 million

McGuire Sponsel looks outside of the traditional scope of services to ensure that the benefit provided is maximized. In 2016, the owner of a bourbon distillery constructed and placed in service a $14.5 million dollar whiskey distillery. The client was overstating the amount of 39-year real property and limiting the depreciation deductions available in the early years of their investment. McGuire Sponsel professionals were able to reclassify approximately 60 percent of the assets into five, seven, or 15 year property. Accelerated depreciation deductions resulting from our study yielded an additional $1.8 million of increased cash flow over the first year and a net present value of $1.7 million over the life of the investment.

If a business has acquired properties through purchase, new construction, renovation or leasehold improvements, a cost segregation study may prove valuable.

Do you Qualify for a Cost Segregation Study?

To find out if you or your client may qualify for a cost segregation study, complete and submit the form below. One of our cost segregation professionals will contact you to complete a free evaluation.


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Download the PDF case study:

McGuire Sponsel Case Study - Kentucky Distillery - Cost Segregation - Fixed Asset Study

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