Cannabis Grow Facility Cost Segregation Case Study

Cost Segregation is a commonly used strategic tax planning tool that allows companies and individuals who have constructed, purchased, expanded or remodeled any kind of real estate to immediately reduce tax by accelerating depreciation deductions and deferring federal and state income taxes. The following is a case study for a cannabis grow facility to demonstrate the benefits of accelerated depreciation on this property type.

What is Cost Segregation?

Cost Segregation is a commonly used strategic tax planning tool that allows companies and individuals who have constructed, purchased, expanded or remodeled any kind of real estate to increase cash flow by accelerating depreciation deductions and deferring federal and state income taxes.

Building Type: Cannabis Grow Facility

Summary of Benefits Results
Additional Tax Deductions in First Year $5,629,032
Net Present Value (NPV) Over 10 Years $1,970,692
NPV Over Remaining Life of Property $1,991,385
*Benefits typical for tax returns filed 2018-2022

Building Allocation After Study

CS Case Study Golf Cannabis Grow Facility Allocation

Building Information


Purchase Price of Property (less land) $9,000,000
Property Type Cannabis Grow Facility
Building Sq Ft 95,500
Entire Site Sq Ft 180,000
Date Acquired July - Current Tax Year
Federal Tax Rate 29.6%
State Tax Rate 5%
Combined Tax Rate 34.6%
ROI Factor 8%

Calculate Your Tax Savings

Use our Cost Segregation Savings Calculator to estimate tax savings for your type of building. Enter building details for instant results at kbkg.com/costsegregation/calculator.

 

Get a Free Download of this Cannabis Grow Facility Cost Segregation Case Study



Cannabis Grow Facility Cost Segregation Case Study

Cost Segregation Insights

Have Questions? We're here to help.

Our team of experts are well-versed in their respective fields and are able to answer most any question.

CONTACT US