Case Studies
Cost Segregation Tax Savings
| YEAR-OF-SALE
OFFICE BUILDING
- Depreciable Basis: $3,540,000
- Personal Property Segregated: 10%
- Land Imp. Segregated: 8%
- Building: 82%
SAVINGS
- Accumulated Depreciation as of 12/31 w/out CSS: $229,235
- Accumulated Depreciation as of 12/31 w/CSS: $411,428
- Section 481 Adjustment ( Missed Depreciation) $182,193
- Year of Change Tax Savings $69,736
| PURCHASE
OFFICE BUILDING
- Capitalized Cost: $ 55,000,000
- Personal Property Segregated: 10%
- Land Imp. Segregated: 2%
- Building: 75%
- Land: 13%
SAVINGS
- Year 1 Depreciation Exp w/out CSS: $1,200,000
- Year 1 Depreciation Exp with CSS: $1,950,000
- Increased Depreciation $ 750,000
- First full tax year tax benefit $ 262,500
| Look Back
Flex Building
- Depreciable Basis: $3,700,000
- % Personal Property Segregated: 6%
- % Land Imp.Segregated: 17%
- % Building: 77%
SAVINGS
- Accumulated Depreciation as of 12/31/2007 w/out CSS: $823,000
- Accumulated Depreciation as of 12/31/2007 w/CSS: $1,133,000
- Section 481 Adjustment ( Missed Depreciation ) $310,000
- Year of Change Tax Savings: $121,000
| PURCHASE
RETAIL ($3,064,771)
- Personal Property Segregated:6%
- Land Imp. Segregated: 9%
- Building: 29%
- Land: 56%
SAVINGS
- Year 1 Depreciation w/out CSS: $ 34,500
- Year 1 Depreciation w/CSS: $73,500
- Increase Depreciation Expense: $39,000
- First Full Year Tax Benefit: $ 15,100
- Net Present Value Savings $64,000