Projects

Office

Four Story Office Building

Engagement Overview:

Bedford was engaged by a 28-person accounting firm to conduct a cost segregation study for one of their key clients. The objective of the study was to identify assets that could be moved to shorter recovery periods in order to accelerate depreciation and defer taxes.

Property Overview:

This four story office building was completed in October 2002 with a total development cost of $9,556,000. The building occupies a site of 7.32 acres with total space of approximately 98,800 sqare feet.

Engineering Process:Four Story

Our engineers examined all the design and construction documents, contractor payment requisitions and other related data to determine the cost basis for every component of the building. Next, our engineer conducted an onsite study to identify, measure, quantify and photograph the existence of all assets eligible for accelerated depreciation. Further, our team (site engineer, costing engineer and tax specialist) identified assets eligible for 30% Bonus Depreciation.

Estimate of Benefits & Savings:

The preengagement estimate we provided to the CPA & client showed a potential allocation of $1,910,000 to shorter depreciable lives.

Results:

Our study allocated $1,950,000 or 20.4% of the assets to shorter recovery periods. As a result, the property owner saved $427,000 in taxes (Net Present Value over the next 10 years).

CPA's Quote:

“Our firm had engaged Bedford to complete cost segregation studies on numerous client properties and I was very impressed with the tax savings. As a result, I had them perform a study on this property.” “They did what they promised and then some.”

Client’s Quote:

“I was extremely impressed with our CPA for having the foresight to bring this tax savings opportunity to my attention. The study went very smoothly and the results exceeded my expectation. Bedford’s engineers are experts in this field and performed very well.”