Projects

Industrial

Trucking Facility

Engagement Overview:

Bedford was referred by a large regional CPA firm to conduct cost segregation studies for one of their key clients. The goal was to identify assets that could be moved to shorter depreciation schedule and save the client taxes.

Property Overview:

This trucking terminal was constructed in 2001 with an addition in 2003 for a total development cost of $5,635,252. The building occupies a site on 17.9 acres with total interior space of approximately 57,303 square feet.

Engineering Process:

Our engineers examined all design and construction documents, contractor payment requisitions and other related data to determine the cost basis for every component in the building. Next, our engineer conducted an onsite study to identify, measure, quantify and photograph 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:

Our pre-engagement estimate provided to the CPA and client provided a potential reallocation of $1,127,050 to shorter depreciable lives.

Results:

Our study resulted in $2,580,946 or 45.8% of the assets being moved to a shorter depreciable life. As a result, the property owner saved $551,000 in taxes (Net Present Value over the next 10 years).

Owner’s Comments:

“Bedford has done excellent work on all of our projects. Several of our people who had contact with their engineers commented about their diligence, thoroughness, promptness, and excellent work ethic. Bedford’s results are always outstanding, and I look forward to utilizing their services on future projects.”