Medical Building – Getting Extra Cash from Engineering Based Cost Segregation Study

Medical Office New Construction

Before the study, only $2,088,000 was reported in 5 year assets when in fact $6,169,320 was eligible and 15 year assets grew from $626,400 to $892,500. The first year savings for the client totaled $1,007,487 and the cost-benefit of doing the study was 84:1.

In this particular case the difference was accounted for in equipment including structural support, special lighting, specialty HVAC items, plumbing for medical related items (medical gases, operatory sinks, etc.), electrical supplies associated with medical equipment, human safety items (protective walls for x-rays, etc.), carpet and vinyl flooring, cabinetry and vinyl wall coverings.

Before Engineering Based Study:        After Engineering Based Study:
Total assets:                  $20,564,400            Total assets:                  $ 20,564,400
5-year assets:                $2,088,000             5-year assets:                $ 6,169,320
15-year assets:               $ 626,400               15-year assets:               $ 892,500
39-year assets:               $ 17,850,000         39-year assets:               $ 13,502,580

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