Cost Segregation Study on Supermarket in Los Angeles
$575,828.35 in Total Realized Tax Savings By applying cost segregation, property investors accelerate depreciation, reduce tax liability and increase their bottom
December 23, 2020
Case Studies: Grocery Stores
Looking for supermarket case studies? This grocery store case study is just one example of the many times we’ve conducted cost segregation studies for grocery stores and food marts.
Grocery store owners and large-scale supermarket chains operate within facilities that require immense capital investment in specialized infrastructure and climate-controlled systems. Engineered Tax Services helps these retailers maximize their liquidity by identifying the vast array of assets within a grocery store that qualify for accelerated depreciation. From expansive refrigeration networks to specialized lighting and food preparation areas, ETS utilizes an engineering-based approach to front-load tax deductions. This strategic increase in cash flow allows grocery storeoperators to reinvest in inventory, technology upgrades, and facility modernizations that are essential in the competitive retail landscape.
Grocery Store Case Studies
Because a grocery store contains unique mechanical and electrical requirements—such as refrigerated display cases, heavy-duty HVAC systems, and specialized plumbing for deli and bakery departments—there are significant opportunities for reclassifying assets into 5, 7, or 15-year recovery periods. Engineered Tax Services meticulously documents these components, moving them away from the standard 39-year commercial depreciation schedule. Furthermore, ETSidentifies savings through 179D energy tax deductions for high-efficiency lighting and cooling systems common in modern supermarkets. These grocery store results demonstrate how specialized tax engineering delivers substantial Net Present Value increases and long-term financial benefits for retail property owners.
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