McGuire Sponsel completed a study for a Construction Office just North of Dallas, Texas. McGuire Sponsel was referred to the company by a CPA firm in Texas. The Construction Company purchased the office space for $2,500,000 and renovated it for $6,359,704. The investment totaled $8,859,704 with a land value of $946,723. The depreciable basis of the property totaled $7,912,981.
McGuire Sponsel professionals were able to reclassify 31 percent of the total depreciable property into 5 or 15-year property. The accelerated depreciation deductions resulted in an increased cash flow of $732,598 over the first year and a net present value of $485,380 over the life of the investment.