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Client Snapshot
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Building Type
Retail Facility
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Location
Washington, MO
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Study
Cost Segregation
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Project Objective
Asset Reclassification
Approach & Results
Client Profile
A CPA firm contacted McGuire Sponsel to conduct a cost segregation study for their client who recently acquired a retail facility in Washington, Missouri for approximately $1.6 million.
Process
Our Fixed Assets team was engaged to conduct a cost segregation study shortly after the property’s purchase in February 2023, with the engagement letter signed in March 2024. Our team executed a comprehensive site visit in April 2024, meticulously examining the property and reviewing all necessary documentation. This thorough approach enabled precise identification and strategic reclassification of assets into more advantageous depreciation categories.
Study Results
The cost segregation study concluded in May 2024, and our team of experts successfully reclassified over 27% of the depreciable basis from 39-year property into 5- and 15-year property classifications. These personal property assets, all qualifying for bonus depreciation, amounted to $179,965 of the total investment.
As a result of this strategic reclassification, the study generated an increased first-year cash flow of $41,995 for the client, surpassing the initial projection by more than $18,056. Additionally, the net present value of cash flows over the investment’s lifespan exceeded $35,293.
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$35,293
Net Present Value
Contact Us
Wondering whether a cost segregation study makes sense for your client?
Reach out to McGuire Sponsel to discuss your specific project and potential tax savings.
Additional Resources
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Fixed Asset ServicesJanuary 22, 2026
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by Dave McGuireLearn how a $3M manufacturing facility achieved a 17:1 ROI through a cost segregation study, accelerating depreciation and boosting first-year...
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From Policy to Practice: The Historical Landscape of Cost Segregation
by Tim LeMasters & Dave McGuireIn this episode of Let’s Talk Tax, host Tim LeMasters discusses the history and intricacies of cost segregation with expert...
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Fixed Asset ServicesSeptember 27, 2024
Webinar Recording – How Cost Segregation can Help Maximize IRA Incentives
by Dave McGuireThe Inflation Reduction Act of 2022 has been a windfall for many businesses, including those looking to upgrade their facilities...



