Cost Segregation Denver, CO
Cost Segregation Study Results
Cost Segregation is a viable cash flow enhancing tool regardless of location, but can be particularly valuable in the Denver, CO area. It is the most populous city within a 500 mile radius, ranking 2nd in the Mountain West region following only Phoenix, AZ. The region’s natural hub for commerce, the Denver MSA ranks 19th in the U.S. in population, and was recently named the “best place to live in the USA” (U.S. News & World Report), creating great demand for housing, shopping and other commercial ventures.
Due to its location, Denver is a natural location for storage and distribution of goods and services to the Mountain States, along with the western and southwestern regions of the U.S. It also is home to business sectors including communication, manufacturing, transportation, energy and government.
Over the past 24 months, Colorado has been in our “Top 5” areas for cost segregation studies. We know the area, understand the business climate, and would love to help you enhance your bottom line in the “mile-high city”!
Sample of Actual Study Results
Asset Type
Warehouse
Multifamily
Office
Auto Dealer
Retail
Depreciable Basis
$2,520,000
$60,203,520
$2,220,000
$1,884,514
$6,579,369
Purchase Date
01/01/16
06/01/16
03/01/14
05/01/13
12/01/13
Year of Study
2016
2016
2014
2014
2015
1st Year Additional Depreciation
$86,856
$2,402,765
$74,286
$140,808
$824,804
1st Year Tax Savings
$34,395
$951,495
$29,417
$55,760
$326,622
Year 1 Payback
11.0:1
300.0:1
10.3:1
46.2:1
104.0:1
Initial 5 Years Tax Savings
$171,850
$4,154,184
$128,608
$115,618
$502,556
5 Year Payback
55.7:1
1311.0:1
46.1:1
96.7:1
161.0:1
* 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.
NOTE: The above listed tax savings are based on a 39.6% tax rate for the owner.