Property Overview
This modern auto dealership, purchased in October 2019, features 8,775 square feet of showroom and service space on a large 198,000 square foot lot. Located in a prime retail location, the $5.1 million facility includes specialized areas for vehicle display, customer service, and automotive maintenance. The property combines retail and service functions typical of modern car dealerships
| Property Type | Auto Dealership |
| Purchase price(less land) | $5,096,000 |
| Building sqft | 8,775 |
| Entire site sqft | 198,000 |
| Data acquired | OCT 2019 |
| Tax year study applied | 2019 |
| Tax rate | 41% |
| Present value rate of return | 8% |
| Bonus depreciation | 100% |
Building Allocation After Study
Cost Segregation Study Benefits
The cost segregation study found $1.5 million in assets that qualified for faster depreciation through 5- and 15-year property classifications. This led to big tax savings of $617,220 in the first year, thanks to 100% bonus depreciation. The study’s impact goes beyond just the first year, with tax benefits worth $511,429 over 10 years. When reinvested, these savings could grow to more than $8.4 million over time, showing just how valuable cost segregation can be for auto dealership owners.
Financial Benefits Achieved
| Tax Savings Benefit in First Year | $ 617,220 |
| NPV Over 10-Years | $511,429 |
| NFP Over Remaining Life of Property | $421, 989 |
| Future Value of Invested Savings | $8,488,442 |
