{"id":956,"date":"2025-01-23T18:56:38","date_gmt":"2025-01-23T18:56:38","guid":{"rendered":"https:\/\/leyton.com\/us\/white-papers\/cost-segregation-case-study-cold-storage\/"},"modified":"2026-07-26T16:58:27","modified_gmt":"2026-07-26T14:58:27","slug":"cost-segregation-case-study-cold-storage","status":"publish","type":"whitepaper","link":"https:\/\/leyton.com\/us\/insights\/white-papers\/cost-segregation-case-study-cold-storage\/","title":{"rendered":"Cost Segregation Case Study \u2013 Cold Storage"},"content":{"rendered":"<div class=\"wp-block-leyton-orion-block-text block-text undefined ori-white-bg\"><h2>Maximize Your <strong><mark class=\"has-inline-color has-green-color\">Cold Storage&#8217;s<\/mark><\/strong> 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\">Cold Storage<\/mark><\/strong><br>Cold storage facilities, with their specialized requirements such as <strong>high-power refrigeration, HVAC systems, and plumbing infrastructure, are particularly well-suited for cost segregation.<\/strong> These unique components can be depreciated over shorter periods, allowing owners to maximize tax savings and optimize the financial benefits of their investments. This strategic approach helps cold storage facility owners leverage substantial tax advantages, improving both short-term cash flow and long-term returns. <br><\/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 cold storage facilities with specialized infrastructure and temperature-controlled systems. By optimizing the depreciation life of the cold storage facility and its assets for tax efficiency, these strategies can help reduce taxable income, increase cash flow, and improve overall financial performance for cold storage facility 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>Cold Storage   <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> 210,000 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> $24,950,000<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>$11,926,643<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> $3,370,730<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> $3,526,263<\/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: $1,065,159 at  4%<\/p><\/a><\/div><div class=\"\"><a href=\"\"><h4>7 Year Property <\/h4><p>Depreciable Basis: $871,494 at 3%<\/p><\/a><\/div><div class=\"\"><a href=\"\"><h4>15 Year Property <\/h4><p>Depreciable Basis: $1,996,000 at 8%<\/p><\/a><\/div><div class=\"\"><a href=\"\"><h4>39 Year Property <\/h4><p>Depreciable Basis: $21,017,348 at 84%<\/p><\/a><\/div><div class=\"\"><a href=\"\"><h4>Total<\/h4><p>Depreciable Basis: $24,950,000 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>Maximize Your Cold Storage&#8217;s 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. Cold StorageCold storage facilities, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":957,"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-956","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>Cold Storage Facilities Cost Segregation Case Study | Leyton<\/title>\n<meta name=\"description\" content=\"Discover Cold Storage Facilities Cost Segregation with Leyton. 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