Industrial Facility
$1,700,000
$553,155
$331,893
The property
An industrial facility with warehouse and office areas, interior bridge cranes and crane rails, specialized electrical service, suspended warehouse heaters, concrete and asphalt paving, gravel areas, and a rear trench silo.
The study
Our engineers completed a detailed inspection of the industrial building and operating systems. Major shorter-life assets included bridge cranes, crane rails, equipment electrical connections, specialty receptacles, overhead-door operators, exterior lighting, site paving, and other improvements supporting the industrial use of the property.
The result
Approximately $553,000 was reclassified into 7- and 15-year property. At the applicable 60% bonus depreciation rate, roughly $332,000 of the reclassified basis was immediately bonus-eligible, with the remaining basis depreciated over the shorter recovery periods.