Cost Segregation Atlanta, GA
Cost Segregation Study Results
Cost Segregation is a viable cash flow enhancing tool regardless of location, but can be particularly valuable in the greater Atlanta region. Land values are lower, leading to sprawling campuses rife with potential short term depreciable assets. The robust economy and outstanding lifestyle lend themselves to increasing the value of business investments, leading to a need for additional depreciation to offset income.
Atlanta, the 9th largest metropolitan statistical area in the country, has a diverse economy, with dominant sectors including logistics, professional and business services, media operations, and information technology. Its GDP is the eighth largest in the U.S., and ranks as 17th-largest in the world. From a corporate standpoint, Atlanta has the third-largest concentration of Fortune 500 companies in the U.S., and host offices of over 1,250 multinational corporations. The city boasts a highly educated workforce, the world’s busiest airport, major media connections, and a burgeoning film and television production industry.
The state of Georgia ranks 6th in number of cost segregation studies conducted by our firm in the past 24 months. We are familiar with the territory, understand what makes the area unique, and are confident we can save you money!
Sample of Actual Study Results
Asset Type
Warehouse
Multifamily
Medical Office
Multifamily
Medical Office
Depreciable Basis
$4,276,125
$27,150,000
$881,119
$40,125,000
$623,971
Purchase Date
12/01/15
05/01/16
08/01/15
09/01/15
02/01/14
Year of Study
2011
2016
2015
2015
2014
1st Year Additional Depreciation
$432,502
$747,739
$166,296
$2,170,744
$12,069
1st Year Tax Savings
$171,271
$296,105
$65,853
$859,615
$4,779
Year 1 Payback
56.7:1
101.0:1
36.7:1
288.0:1
2.8:1
Initial 5 Years Tax Savings
$228,899
$1,274,128
$72,471
$3,398,982
$30,027
5 Year Payback
75.8:1
434.0:1
41.3:1
1138.0:1
18.9:1
* Results from “Catch Up” studies which allow the owner of properties purchased in previous tax years
to benefit from cost segregation in the current tax year without filing amended returns.
** Mid-Quarter depreciation convention utilized due to purchase date.
***Results include bonus depreciation first year calculations.
NOTE: The above listed tax savings are based on a 39.6% tax rate for the owner.