Retail Cost Segregation
Cost Segregation Studies
Retail Buildings offer significant exterior short life components. Our retail cost segregation studies identify all qualifying interior items, and focus special attention of the abundance of opportunities presented by the lighted parking areas or parking structures, signage and other relevant components.
Our studies also break out the IRS mandated Units of Property when considering the long-term components present in your building.
Our retail cost segregation studies typically pay back the cost of the study in the range of 9 to 1 up to more than 70 to 1 in the first year of study use.
Note the actual results highlighted in the table below. First year savings range from roughly $30,000 up to in excess of $330,000 for a large asset!
Sample of Actual Study Results
Depreciable Basis
$1,398,779
$1,400,000
$1,920,000
$19,076,394
$1,760,550
Purchase Date
04/01/12
05/01/14
05/01/15
04/01/15
09/01/14
Year of Study
2014
2015
2015
2015
2014
1st Year Additional Depreciation
$183,485
$109,089
$77,224
$846,511
$84,184
1st Year Tax Savings
$69,640*
$42,032
$28,107
$332,078
$30,166
Year 1 Payback
23.2:1
14.0:1
9.4:1
73.8:1
10.1:1
Initial 5 Years Tax Savings
$103,652*
$87,249*
$138,173
$1,534,666
$135,511
5 Year Payback
34.6:1
29.1:1
46.1:1
341.0:1
45.2:1
* 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.