In 2023, the owners of a gas station and carwash in Piedmont, South Carolina, undertook strategic tax planning to enhance their investment. The property consists of a single-story building originally constructed in 2000.
The building features amenities such as high-efficiency HVAC systems, walk-in coolers, and contemporary lighting fixtures. The property also includes fuel canopies, fuel dispensing pumps, and a carwash canopy.
The owners engaged Engineered Tax Services (ETS) to perform a comprehensive cost segregation study of the property. This study aimed to identify and reclassify specific assets, enabling the acceleration of depreciation and optimizing tax benefits. This case study outlines the cost segregation strategy employed and its significant impact on the financial outlook of the property.