Manufacturing
Manufacturing and Food Processing facilities strike a solid blow against taxes with a cost segregation study. Typically they stand tall as a segregation candidate with substantial costs in power, data, HVAC systems, security systems, site improvements, etc.
Any profitable manufacturing or food processing operation that does not include a segregation analysis in their immediate tax plan may be suffering a tremendous loss of opportunity and cash flow.
A breakdown by percentage for a manufacturing or food processing facility with a capitalized cost basis of $1,000,000 after a segregation analysis is completed may look like the following:
| Capital Costs by Class Life after Cost Segregation | 2 Yr Cash Benefit $101,560 | |||
| 5 Years | 7 Years | 15 Years | Total | |
| 43.6 % | 6.7 % | 15.9 % | 66.2% | NPV Tax Savings $129,515 |
| $436,000 | $67,000 | $159,000 | $662,000 | |
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