Cost Segregation Houston, TX
Cost Segregation Study Results
Cost Segregation is a viable cash flow enhancing tool regardless of location, but can be particularly valuable in the greater Houston area, our home town! Houston is the 4th most populous city in the U.S., and has been described as the most diverse city in the U.S. With a huge population that is growing every year, there seems to be a constant demand for more housing, more retail and entertainment options, and more office space.
Houston’s economy has a broad industrial base including energy, biomedical research, manufacturing, aeronautics and transportation. The Port of Houston ranks first in the U.S. in international waterborne tonnage handled, and second in total cargo tonnage handled. It is a global city whose business strengths include international trade, medicine, finance, research, technology, and of course, the oil industry. The greater Houston MSA has the nation’s fourth largest GDP, and exceeds all but 26 countries world-wide. Only New York City is home to more Fortune 500 companies than Houston.
Texas ranks second in number of cost segregation studies produced by our team in the past 24 months. Let our “Space City” team of cost segregation experts get your investments off the launching pad!
Sample of Actual Study Results
Asset Type
Multifamily
Green Office
Retail
Hotel
Multifamily
Depreciable Basis
$9,900,000
$4,356,600
$2,800,000
$2,566,500
$17,245,422
Purchase Date
12/01/15
09/01/15
04/01/15
11/01/12
09/01/15
Year of Study
2015
2015
2015
2015
2015
1st Year Additional Depreciation
$140,254
$82,153
$117,060
$492,635
$944,809
1st Year Tax Savings
$55,541
$32,533
$46,356
$195,084
$374,144
Year 1 Payback
19.9:1
7.3:1
17.1:1
58.7:1
127.0:1
Initial 5 Years Tax Savings
$808,860
$147,714
$213,077
$239,091
$1,487,650
5 Year Payback
290.0:1
34.0:1
79.4:1
72.7:1
506.0:1
* 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. 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.