How An ETS Cost Segregation Study Won a Client $105 Million in Tax Savings!

In its 20-year history of completing cost segregation studies, Engineered Tax Services has obtained some pretty impressive tax savings, but none stands out like the amazing $105 million in taxes we saved for a Major League Soccer stadium in Columbus, Ohio! Thanks to bonus depreciation, we can create large a first-year tax savings for our clients. 

tax savings
Professional Sports Stadiums Qualify for Large Tax Savings with a Cost Segregation Study

Engineering Found $105 Million in Tax Savings

When our engineer Robert Schultz visited the stadium on September 23, 2021 for a full-day inspection, the stadium was newly built; it was placed in service on July 1, 2021. By the end of the day, we were able to save the client $105 million taxes. Here’s the breakdown:

  • 5-year cost segregation savings: $76,379,781.39
  • 15-year cost segregation savings: $30,374,957.71

How were we able to get the client such a huge amount in tax savings?

“A significant portion of our five-year amortization came from our deep dive into the electrical installation for this massive project,” said Nick Macsanders, Manager of Special Projects & Development. “We dug into the tax code to find additional opportunities for entertainment venues. For example, we intensely scrutinized seating, screens, specialty grow lights, and retractable awnings.”

Stadium Goldmine

The stadium’s huge VIP area was also a goldmine for cost segregation recapture. “It was a vast bar/entertainment room where they sold all kinds of drinks, hamburgers, and other refreshments, so there was quite a bit of kitchen equipment to amortize. In addition, they offered approximately 80 private suites for VIPs with hotplates and other electrical fixtures, where we discovered a lot of cost seg opportunities.”

What’s even more remarkable is the fact that the new stadium cost $316 million to build, but we immediately carved out $105 million—one-third of the construction cost—in bonus-eligible five- and 15-year assets, creating a first-year savings of nearly $40 million for our client.

National Experts in Cost Segregation

This just goes to show how much we here at ETS can benefit our clients. We’re national experts in cost seg, and we know what we’re doing. When we meet with you, we bring our expertise—and impressive accomplishments like this—to the table.

If you’re a building owner—or if you’re a CPA who represents building owners—just think: if we can do this for a MLS stadium, what can we do for you or your client?

Contact us for a Free Analysis today!

Recent Posts

tax planning high-net-worth

Advanced Tax Planning Strategies for High-Net-Worth Individuals 

With evolving tax codes and complex planning vehicles, the high-stakes game of tax strategy can seem daunting for even the savviest investors. However, the rewards for skillful navigation are well worth the effort. Advanced tax planning presents high-net-worth individuals and families with lucrative opportunities to actively minimize tax exposure, unlock savings and optimize wealth transfer.  

Read More »
land value calculation guide

Understanding Land Value in Cost Segregation Studies

One of the best ways to reduce the tax burden of commercial real estate is with cost segregation. If you’re ready to reap the rewards of accelerated depreciation, you’ll need to provide one essential piece of information: land value. Determining this value accurately is key to both IRS compliance and maximizing your deductions—let’s explore how

Read More »
our culture

The Road to $1 Million: How Jill Scaled the Sales Summit

When Jill Mazur saw the email announcing her induction into ETS’s vaunted million-dollar club, it marked the realization of a long-held ambition. “To hit that was amazing. It meant a lot to me to get there, to show the company that I really love what I do and I really want to help people,” she

Read More »

Contact Us