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Cost Segregation Benefits for Manufacturing Plants |
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Apartments - Hotels - Manufacturers - Offices - Restaurants - Retail Plazas - Warehouses A $3 million manufacturing plants generates a lot of revenue each year, and even after factoring different costs and upkeep, there are still sizeable amounts of taxable income to be had. After completing a Cost Segregation Study the manufacturing plant can save $32,637 over the traditional straight-line deduction, and $106,900 from year one to six. Should the business reach its depreciable life, a Cost Segregation Study can save the manufacturer $107,532. | Cash Flow Increased in year 1 | $ | 32,637 | | Cash Flow Increased in year 1-6 | $ | 160,900 | | Net Present Value (NPV) | $ | 142,525 | | Combined Tax Rate | | 41% | | Net Present Value Factor | | 8% |
| Asset Class | Percent
Reclassed | 　 | Depreciable
Basis | | 5 - Year Property | 5% | | 150,000 | | 7 - Year Property | 10% | | 300,000 | | 15 - Year Property | 12% | | 360,000 | | 39 - Year Property | 73.0% | | 2,190,000 | | Total Real Property | $ | 3,000,000 |
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