888.499.8188

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
Skip to content