Cost Segregation Study/Ethanol
Client Profile
McGuire Sponsel professionals were contacted to perform a cost segregation study for a company completing a $130 million Ethanol Production Plant.
The client had run some preliminary numbers, estimating that they would be able to reclassify approximately 80% of
the construction costs to shorter lived assets.
Our Process
McGuire Sponsel employees completed a detailed, engineering-based cost segregation analysis of the subject property. Our engineers physically inspected the subject property and reviewed significant property documentation including all blueprints and construction invoices.
The deliverable report included detailed documentation and calculations for each property and cited tax law to support all asset classifications.
Study Results
Based on our study, the client realized increased cash flow in excess of $8 million over the first five years of their investment. These increased depreciation deductions produced an estimated net present value of tax savings in excess of $4.5 million over the life of the investments.