Private School / Day Care Facility
Cost Segregation
Private School / Day Care Facilities offer an abundance of five year life assets. Short life items are found in the classrooms and the expansive common areas and food preparation and dining areas.
Significant parking, along with enhanced and well lighted playground / sports court areas provide short life assets on the exterior.
Our cost studies also break out the IRS mandated Units of Property when considering the long-term components present in your building.
It is common for our private school / day care cost segregation studies to pay back the cost of the study by more than 20 to 1 in the first year of study use. Note the actual results highlighted in the table below. You will see first year savings ranging from slightly less than $20,000 up to almost $150,000 for very large assets.
Sample of Actual Study Results
Depreciable Basis
$11,766,236
$4,964,198
$15,983,702
$1,591,175
$11,166,715
Purchase Date
7/1/2015
8/1/2015
8/1/2015
9/1/2015
8/1/2015
Year of Study
2015
2015
2015
2015
2015
1st Year Additional Depreciation
$223,895
$128,157
$376,025
$56,939
$184,206
1st Year Tax Savings
$88,663
$50,750
$148,906
$22,206
$72,946
Year 1 Payback
29.7:1
17.0:1
49.8:1
7.3:1
26.8:1
Initial 5 Years Tax Savings
$437,476
$239,612
$737,813
$92,421
$301,079
5 Year Payback
147.0:1
81.1:1
248.0:1
31.3:1
112.0:1
* 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.
NOTE: The above listed tax savings are based on a 39.6% tax rate for the owner.