Food Processing & Agriculture
Cost Segregation Analysis
This service identifies and reclassifies project-related costs that are currently classified as real or personal property. This can help maximize your cash flow by claiming accelerated depreciation on reclassified assets for new construction projects, acquisitions and existing facilities.
Case Histories
Winery
We prepared a cost segregation study for a Sonoma County winery, which constructed a new crush pad and barrel building that cost approximately $7 million. The study identified more than $1.9 million of costs that qualified for shorter tax-depreciation recovery periods of five, seven, or fifteen years. The taxpayer was able to deduct additional depreciation of $1.575 million over the next five years, generating additional cash flow from deferred federal and California taxes of more than $770,000. The net present value of the tax deferral, due to the timing of the depreciation deductions resulting from the cost segregation study, was $490,000.
Food Processing
Moss Adams recently teamed with a large processing client to deliver cost segregation services that amounted to present value savings of $1.8 million for the client. Team members from our Food Processing and Agriculture niche played instrumental roles in ensuring that our client received bottom-line value. Visit the Tax Services -- Cost Segregation pages for more information on this service.