McGuire Sponsel was contacted by a CPA firm to conduct a cost segregation study for a newly constructed hybrid single-tenant office and warehouse building located in Columbia, South Carolina.
Join us for the State of Specialty Tax Webinar Series, designed to equip CPAs and real estate professionals with the knowledge and strategies needed to navigate the complexities of tax year 2024 and beyond.
The state of Maryland reassesses one-third of all properties each year. For 2025, reassessment values have just been released for about one-third of Maryland property owners. These new values will determine their property taxes for the next three years.
In Ohio, county auditors are required to reappraise every real estate parcel in their county once every six years. The property values determined through this process, when multiplied by local tax rates, determine the amount property owners must pay in real estate taxes.
McGuire Sponsel was contacted by a CPA firm to conduct a cost segregation study for an acquired retail facility located in Antioch, California.
McGuire Sponsel was contacted by a CPA firm to carry out a property tax appeal for a real estate development company in Louisville, KY.
In his latest piece in Accounting Today, Dave McGuire discusses bonus depreciation leveraging down as we enter the beginning of 2025.
McGuire Sponsel was contacted by a CPA firm to conduct a cost segregation study for a newly acquired mixed-use apartment and commercial complex located in Pittsburgh, Pennsylvania.
As the new year begins, your clients may be facing important deadlines for appealing local property tax assessments in Connecticut.
Over the past year, many CPA partners across the country have expressed a strong desire to enhance their staff’s face-to-face interactions and proactive consulting opportunities with clients.
Client Snapshot
-
Building TypeHybrid Office and Warehouse Facility
-
LocationColumbia, SC
-
StudyCost Segregation
-
Project ObjectiveAsset Reclassification
Approach & Results
Client Profile
A CPA firm engaged McGuire Sponsel to conduct a cost segregation study for a recently constructed hybrid single-tenant office and warehouse building in Columbia, South Carolina. The client’s $2.28 million project was designed to meet the evolving needs of modern businesses, combining administrative space with efficient storage and distribution capabilities.
Process
Our Fixed Assets team was brought in to perform a comprehensive cost segregation study on this newly constructed hybrid facility. The engagement began on January 8, 2024, several months after construction was completed, allowing for a thorough analysis of the finished structure and its various components.
Our team conducted an intensive on-site evaluation on January 18, 2024. This detailed inspection, coupled with an exhaustive review of construction documents and final pay applications, enabled our team to identify numerous opportunities for strategic asset reclassification, optimizing the tax benefits for this custom-built property.
Study Results
The cost segregation study was finalized on February 16, 2024, resulting in over 24% of the depreciable basis being successfully reclassified from the standard 39-year property into more advantageous 5- and 15-year categories. This reclassification encompassed personal property assets totaling more than $548,000, all of which qualified for bonus depreciation.
This strategic asset categorization generated substantial financial benefits. The study produced an increased first-year cash flow exceeding $163,000, surpassing the initial projection by over $71,000. Moreover, the net present value of cash flows over the investment’s lifespan was calculated to exceed $116,000.
-
$116,000
Net Present Value