Case Study
Our team of experts can value engineer
your property in order to assign the appropriate depreciable life for each
asset item based on current depreciation principles set forth by the IRS.
Our commitment is to maximize your overall tax savings and provide the level of reporting within the study that will stand up to any tax audit. A recent Cost Segregation study performed on a commercial building that had a construction cost of $2,900,000.00 had the following benefits:
- Increase in Deprecation First 5 Years: $447,596.00
- Year 1 Return on Investment: 10:1
- Total Value of Tax Benefit: $123,512.00
| Estimated Increased Depreciation Deductions Years 1-5 | $447,596 | ||||||||||
| Estimated Net Present Value After Tax Benefit: | $123,512 | ||||||||||
| PROJECT INFORMATION | % Reclass | ||||||||||
| TOTAL CONSTRUCTION COST | 2,900,000 | ||||||||||
| Property identified as Non-depreciable Lane | - | 0.00% | |||||||||
| Property identified as 5-Year MACRS | 290,000 | 10.00% | |||||||||
| Property identified as 7-Year MACRS | - | 0.00% | |||||||||
| Property identified as 15-Year MACRS (150% declining balance) | 348,000 | 12.00% | |||||||||
| Property classified as Buildings & Improvements 39-Year MACRS | 2,262,000 | 78.00% | |||||||||
| RATES AND YEARS | |||||||||||
| Present Value Discount Rate | 8% | ||||||||||
| Tax Rate | 35% | ||||||||||
| Year Property Acquired/Built | 2008 | ||||||||||
| Current Year | 2008 | ||||||||||
For More Information please see the following links:
• Cost Segregation Spread Sheet
• Cost Segregation Depreciation Chart
Real Estate Appraisal 
Cost
Segregation Property Tax Consulting
Cost
Segregation Property Tax Consulting