PROJECT PROFILE:
Preschool Facility
TAXES SAVED:$75,851*

Property Overview: 
The preschool center was completed in February 2007 for a total development cost of $1,130,500. The building occupies a site on 2.06 acres with total interior space of approximately 8,232 square feet.

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.

Estimate of Benefits & Savings:
A pre-engagement estimate provided to the CPA and client provided a potential reallocation of 30% or $395,000 to shorter depreciable lives.

Results:
The study resulted in 41.37% or $544,594 of the assets being moved to a shorter depreciable life. As a result, the property owner saved $ 92,000 in taxes for the first tax year and $95,500 net present value* over the next ten years.

Read the printable pdf document.

 

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