by Dave McGuireJune 10, 2024

Client Snapshot

  • Building Type

    Auto Dealership

  • Location

    Littleton, CO

  • Study

    Cost Segregation

  • Project Objective

    Asset Reclassification


Approach & Results

A CPA firm recently engaged McGuire Sponsel to carry out a cost segregation study for an auto dealership acquired in 2023 for $8 million in Colorado.

Leveraging our Fixed Asset Services team’s expertise in engineering, construction, architectural design, and in-depth understanding of IRS depreciation guidelines, we conducted a comprehensive cost segregation analysis of the property. Through meticulous site inspections and a thorough review of property documentation, we successfully reclassified over 30% of the depreciable basis into 5- and 15-year property. Notably, these personal property assets—all bonus depreciation eligible—accounted for over $1.25 million.

The entire study spanned a duration of three months and produced compelling results for our client, yielding an increased first-year cash flow of over $380,000, with a net present value of cash flows over the life of the investment exceeding $270,000.

  • $270,000

    Net Present Value