Gas Station/Convenience Store

Gas Station/Convenience Store
TAXES SAVED: $242,351*

Property Overview:
The gas service station/convenience store was constructed and placed in service in April 2006 with a total development cost of $1,180,736. The convenience store occupies 2,833 square feet on a parcel of 1.104 acres.

Engineering Process:
The project engineer 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, the project engineer conducted an on-site study to identify, measure, quantify and photograph all assets eligible for accelerated depreciation.

The study resulted in $642,878 or 54.4% of the assets being moved to 5-year depreciable life and $537,858 or 45.6% of the assets being moved to a 15-year depreciable life. As a result, the property owner saved $133,881 in taxes for the first tax year and $242,351 net present value* over the next ten years.

Convenience stores greatly benefit from cost segregation studies because many buildings meet the IRS guidelines and can
qualify as a 15-year depreciable life.

Read the printable pdf document.


*-Represents the 10 year NPV (net present value) savings using a 6% discount rate  

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