{"id":950,"date":"2025-01-22T20:50:35","date_gmt":"2025-01-22T20:50:35","guid":{"rendered":"https:\/\/leyton.com\/us\/white-papers\/cost-segregation-case-study-food-processing-facility\/"},"modified":"2026-07-26T16:58:27","modified_gmt":"2026-07-26T14:58:27","slug":"cost-segregation-case-study-food-processing-facility","status":"publish","type":"whitepaper","link":"https:\/\/leyton.com\/us\/insights\/white-papers\/cost-segregation-case-study-food-processing-facility\/","title":{"rendered":"Cost Segregation Case Study \u2013 Food Processing Facility"},"content":{"rendered":"<div class=\"wp-block-leyton-orion-block-text block-text undefined ori-white-bg\"><h2><strong><mark class=\"has-inline-color has-green-color\">Food Processing Facility<\/mark><\/strong>, Maximize Your Tax Strategy<\/h2><p><strong><mark class=\"has-inline-color has-green-color\">What is Cost Segregation<\/mark><\/strong><br><strong><a href=\"https:\/\/leyton.com\/us\/cost-segregation\/\"><mark class=\"has-inline-color has-secondary-color\">Cost segregation<\/mark><\/a> <\/strong>is an effective tax planning strategy that helps businesses and individuals involved in <strong>constructing, purchasing, expanding, or renovating real estate<\/strong> reduce their tax liabilities by accelerating depreciation deductions, which allows for the deferral of both federal and state income taxes.<br><br><strong><mark class=\"has-inline-color has-green-color\">Food Processing Facility<\/mark><\/strong><br>For food processing facilities, it can be particularly beneficial by allowing the accelerated depreciation of specialty equipment, such as <strong>cold storage systems, power infrastructure, HVAC, and plumbing.<\/strong> The following case study demonstrates how accelerated depreciation can provide significant tax savings, showcasing the advantages for properties like apartment buildings, and highlighting how similar benefits can be realized for food processing operations with complex infrastructure. <\/p><\/div>\n\n<h2>Practical Example<\/h2>\n<p>The following case study highlights the benefits of accelerated depreciation, demonstrating how similar advantages can be realized for food processing facilities with specialized infrastructure and operational equipment. By optimizing the depreciation life of the facility and its assets for tax efficiency, these strategies can help reduce taxable income, increase cash flow, and improve overall financial performance for food processing plant owners and operators.<\/p>\n<h3><mark class=\"has-inline-color has-green-color\">Building information <\/mark><\/h3>\n<div><mark class=\"has-inline-color has-green-color\"><strong>\u25cb <\/strong><\/mark><strong>Building Type<\/strong><mark class=\"has-inline-color has-green-color\"> \ud83e\udc6a <\/mark>Casino<br><mark class=\"has-inline-color has-green-color\"><strong>\u25cb <\/strong><\/mark><strong>Property Type:<\/strong><mark class=\"has-inline-color has-green-color\"> \ud83e\udc6a <\/mark> Commercial<br><mark class=\"has-inline-color has-green-color\"><strong>\u25cb <\/strong><\/mark><strong>Building Size:<\/strong><mark class=\"has-inline-color has-green-color\"> \ud83e\udc6a <\/mark> 187,500 SF<br><mark class=\"has-inline-color has-green-color\"><strong>\u25cb<\/strong><\/mark> <strong>Study Scope<em>:<\/em><\/strong><mark class=\"has-inline-color has-green-color\"> \ud83e\udc6a <\/mark>Acquisition<br><mark class=\"has-inline-color has-green-color\"><strong>\u25cb<\/strong><\/mark> <strong>Condition<\/strong>:<mark class=\"has-inline-color has-green-color\"> \ud83e\udc6a <\/mark>New<br><mark class=\"has-inline-color has-green-color\"><strong>\u25cb<\/strong><\/mark> <strong>Filling Year:<\/strong><mark class=\"has-inline-color has-green-color\"> \ud83e\udc6a <\/mark> 2023<br><mark class=\"has-inline-color has-green-color\"><strong>\u25cb<\/strong><\/mark> <strong>Date Placed in Service:<\/strong><mark class=\"has-inline-color has-green-color\"> \ud83e\udc6a <\/mark> 2018<br><mark class=\"has-inline-color has-green-color\"><strong>\u25cb<\/strong><\/mark> <strong>Purchase Price less Land or Total Construction Cost:<\/strong><mark class=\"has-inline-color has-green-color\"> \ud83e\udc6a <\/mark> $20,000,000<br><mark class=\"has-inline-color has-green-color\"><strong>\u25cb<\/strong><\/mark> <strong>Tax Rate:<\/strong><mark class=\"has-inline-color has-green-color\"> \ud83e\udc6a <\/mark> 30%<br><mark class=\"has-inline-color has-green-color\"><strong>\u25cb<\/strong><\/mark> <strong>Return on Investment Factor:<\/strong><mark class=\"has-inline-color has-green-color\"> \ud83e\udc6a <\/mark> 8%<\/div>\n<h3><mark class=\"has-inline-color has-green-color\">Summary of Benefits<\/mark><\/h3>\n<div><strong><mark class=\"has-inline-color has-green-color\">\u25cb<\/mark> 25% Additional Tax Deductions in First Year:<\/strong> <mark class=\"has-inline-color has-green-color\"> \ud83e\udc6a <\/mark>$9,247,738<br><br><strong><mark class=\"has-inline-color has-green-color\">\u25cb<\/mark> RNPV Over Remaining Life of Property<\/strong>: <mark class=\"has-inline-color has-green-color\"> \ud83e\udc6a <\/mark> $2,724,119<br><br><em><mark class=\"has-inline-color has-green-color\"><strong>\u25cb<\/strong><\/mark> <\/em><strong>Net Present Value (NPV) Over 10 Years:<\/strong> <mark class=\"has-inline-color has-green-color\"> \ud83e\udc6a<\/mark> $2,573,180<\/div>\n\n<div class=\"wp-block-leyton-orion-cards-block\"><div><h3>Building Allocation After Study<\/h3><\/div><div><div class=\"\"><a href=\"\"><h4>5 Year Property <\/h4><p>Depreciable Basis: $1,791,907at  %9<\/p><\/a><\/div><div class=\"\"><a href=\"\"><h4>7 Year Property <\/h4><p>Depreciable Basis: $447,977 at 2%<\/p><\/a><\/div><div class=\"\"><a href=\"\"><h4>15 Year Property <\/h4><p>Depreciable Basis: $1,576,617 at 8%<\/p><\/a><\/div><div class=\"\"><a href=\"\"><h4>39 Year Property <\/h4><p>Depreciable Basis: $16,183,499 at 81%<\/p><\/a><\/div><div class=\"\"><a href=\"\"><h4>Total<\/h4><p>Depreciable Basis: $20,000,000 at 100%<\/p><\/a><\/div><\/div><\/div>\n\n<section id=\"eleyton_b\" class=\"ori-eLeyton full-w \"><div class=\"ori-container keys-figures dark medium\">\n    <div class=\"ori-row\">\n    <div class=\"ori-lg-12\">\n        <div class=\"kf-heading\">\n            <h2 class=\"kf-title\">At Leyton USA<\/h2>\n                            <p class=\"kf-desc\">We help companies unlock millions in funding through R&amp;D tax credits, energy incentives, state, and local tax programs. Our experts partner with finance and executive teams to identify overlooked opportunities, improve cash flow, optimize tax positions to reinvest savings into innovation and sustainable growth.<\/p>\n                                        <a href=\"https:\/\/leyton.com\/us\/about-us\/\"\n                   class=\"ori-btn ori-s_btn ori-s_btn_text animated-icon\">\n                    Learn About Us                    <span class=\"animated-arrow\">\n                        <span class=\"material-symbols-outlined\">arrow_outward<\/span>\n                        <span class=\"material-symbols-outlined from-bottom\">arrow_outward<\/span>\n                    <\/span>\n                <\/a>\n                    <\/div>\n    <\/div>\n\n    \n    <div class=\"ori-lg-12\">\n        <div class=\"key-cards ori-row\">\n                            <div class=\"ori-lg-4 ori-md-4\">\n                    <div class=\"key-card\">\n                        <p class=\"key-value\">\n                            <em class=\"left\"><\/em>65                        <\/p>\n                        <span class=\"key-title\">\n                            Industries Served                        <\/span>\n                    <\/div>\n                <\/div>\n                            <div class=\"ori-lg-4 ori-md-4\">\n                    <div class=\"key-card\">\n                        <p class=\"key-value\">\n                            <em class=\"left\"><\/em>25                        <\/p>\n                        <span class=\"key-title\">\n                            Years of Experience                        <\/span>\n                    <\/div>\n                <\/div>\n                            <div class=\"ori-lg-4 ori-md-4\">\n                    <div class=\"key-card\">\n                        <p class=\"key-value\">\n                            <em class=\"left\"><\/em>75                        <\/p>\n                        <span class=\"key-title\">\n                            Tax &amp; Technical Experts                        <\/span>\n                    <\/div>\n                <\/div>\n                    <\/div>\n    <\/div>\n<\/div>\n<\/div><\/section>","protected":false},"excerpt":{"rendered":"<p>Food Processing Facility, Maximize Your Tax Strategy What is Cost SegregationCost segregation is an effective tax planning strategy that helps businesses and individuals involved in constructing, purchasing, expanding, or renovating real estate reduce their tax liabilities by accelerating depreciation deductions, which allows for the deferral of both federal and state income taxes. Food Processing FacilityFor [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":951,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[187],"tags":[107,111,109],"expertise":[372],"class_list":["post-950","whitepaper","type-whitepaper","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized-en","tag-cost-segregation-en","tag-cpa-en","tag-tax-professionals-en","expertise-real-estate-tax-optimization"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.1 (Yoast SEO v28.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Food Processing Facility Cost Segregation Case Study | Leyton<\/title>\n<meta name=\"description\" content=\"Discover Food Processing Facility Cost Segregation with Leyton. 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