by Justin GephartDecember 6, 2019

Client Profile
McGuire Sponsel was recently referred to a boat manufacturer by a CPA firm in Tennessee. The boat manufacturer had just completed a remodel and addition for their manufacturing facility totaling $3.6 million. This facility is located just outside of Nashville, TN. McGuire Sponsel was able to reclassify assets so they depreciate over 15, 7, and 5 years instead of all assets being placed into 39 year depreciable life.

Study Results

McGuire Sponsel professionals were able to reclassify 53 percent of the total depreciable property. The accelerated depreciation deductions resulted in an increased cash flow of $502,408 over the first year and a net present value of $300,710 over the life of the investment.