Bonus Depreciation / Cost Segregation Has Allowed Many Clients
to Eliminate Federal and State Income Taxes!
ROI %
Free Analysis & Price Quote
Complete the form below and O'Connor will do a no-cost, no obligation price quote and preliminary analysis on your property and send it to you within one business day by email.
Bonus Depreciation Calculator
What is Bonus Depreciation?
Bonus Depreciation is a tax incentive provided by the government that allows an owner of a for-profit commercial asset to immediately deduct a large percentage of the purchase price of eligible assets acquired or constructed within the mandated time frames.
It is simply a way to significantly accelerate depreciation. For the current 100% bonus depreciation, the asset must be purchased or constructed after September 27, 2017 and before January 1, 2024.
Through the use of a cost segregation study, all assets identified with a depreciable life of 20 years or less can be deducted in the first year of ownership. That means all identified 5, 7 and 15 year assets can be totally depreciated in the first year.
100% Bonus Depreciation, as provided by the 2017 Tax Cuts and Jobs Act (TCJA), is set to expire as of midnight on December 31, 2023. However, with the recent change of regime in Washington D.C., the law could be changed at any time.
There is no mandate that requires the TCJA to be allowed to sunset as currently written. Given the extraordinary benefits provided by 100% Bonus Depreciation, we encourage all our existing and prospective clients to take advantage of the opportunity while it still exists.
Cost Segregation Studies
Does Your Property Qualify?
- Real property acquired or built after 1986
- Commercial for profit venture
- Depreciable basis of at least $500,000
Can Be Performed For
- Most commercial properties
- Any “for profit” commercial asset
- Significant Renovations
CPA’s and Tax Professionals
None of the roughly 5,000 cost segregation reports we prepared have been changed in an IRS exam.
Cost segregation does not increase audit risk. In virtually every cost segregation assignment, our advisors and appraisers interact with the client’s CPA, accountant or tax advisor… Read More..
Here’s How OUR Process Works
First we seek to understand the client’s needs and magnitude of tax pain and review properties available for cost segregation.
O’Connor & Associates works closely with you and/or your CPA or financial/tax manager to collect existing data and documents regarding the subject property.
An appraiser inspects the property to identify eligible items, then calculates their value and allocates each to its correct depreciation life, per IRS rules and Federal Tax Courts decisions.
Tax Savings Delivered For Our Clients
$
Serving All 50 States with Cost Segregation Solutions
Why O’Connor Cost Segregation?
We are cost segregation specialists! Our studies are IRS tested, CPA approved, and warrantied for the duration of your ownership of the asset studied! Satisfaction is guaranteed; if you are not satisfied, you do not pay.
Our studies are a key component in keeping you IRS compliant! O’Connor cost segregation studies not only detail all short-life components, but also provide a breakout of all Units of Property (UoP) as required in the recent IRS Tangible Property Regulations.
We can help you on assets you have owned for years! “Catch-Up” (C-U) studies allow you to claim previously under-reported depreciation from prior years without filing any amended tax returns!
IRS Approved and Compliant! Cost Segregation is a conservative, defendable, IRS-defined depreciation approach that will reduce your federal income taxes! Our warranty of the study is included in our flat fee study. Should IRS questions arise, we will defend our studies at no additional charge to you!
Accountant Friendly. We partner with your CPA or Tax Professional! Our advisors and appraisers interact with your accountant throughout the entire study process.
O’Connor is experienced and Professional! Our technical experts are state-licensed appraisers who have performed cost segregation studies on thousands of commercial assets nationwide.
Property Types That Benefit From Cost
Segregation Studies.
Apartment Building Cost Segregation
Hotels, Motels, Hospitality
Office Buildings
Medical / Dental Buildings
Shopping Centers
Retail
Assisted Living / Nursing Homes
Manufacturing
Warehouse / Distribution
Storage
Restaurants
Auto Dealerships / Service Centers
Bank / Financial
Private School / Day Care
REITs
Green Buildings
O’Connor has meant SAVINGS for business!
We can do the same for yours. Click here now to estimate your savings
A few words from some of our trusted Clients across America.
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CEO, Commercial Property Management and Investment Firm – Texas
We instruct O’Connor & Associates to perform a cost segregation study as part of our standard operating procedures. The study is an integral part of our strategic tax planning process and has proven efficient, effective and valuable in reducing federal taxes to the appropriate level, therefore optimizing our overall strategy.
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CPA, CGMA, Shareholder – Major CPA Firm – East Coast
We have worked with O’Connor and Associates for over 5 years. Their cost segregation experts have always provided great client service when performing cost segregation studies. They also provide excellent reports which can be used as support documentation for depreciation schedules and IRS audits. Their studies have saved my clients thousands in tax dollars!
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CPA with Major CPA Firm – West Coast
This is the second year we have used O’Connor to deliver cost segregation services. My clients are sophisticated and very demanding large multi-unit residential owners with properties in several states. The O’Connor team of relationship manager, cost segregation manager and CPA confidently addressed all our needs throughout the process. They have become one of our key real estate advisors.
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CPA, Atlanta-based Consulting Firm
As their CPA firm, clients expect us to seek out and utilize tools which will minimize their federal taxes. Cost segregation is an appropriate, conservative and cost effective tool to substantially reduce federal and state income taxes. Our clients have been extremely please with the results.
Highlighted Projects
Multifamily
SAMPLE OF ACTUAL STUDY RESULTS
Asset Type
ApartmentGarden
ApartmentGarden
Apartment-HighRise
ApartmentStructure
ApartmentStructure
Depreciable Basis
$25,719,585
$6,620,736
$3,417,900
$28,000,000
$8,345,000
Purchase Date
Jan-19
Dec-20
Dec-19
Sep-18
Mar-19
Year of Study
2019
2019
2019
2019
2020
1st Year Additional Depreciation
$5,720,674
$2,446,220
$1,226,130
$10,423,165
$1,605,202
1st Year Tax Savings
$2,116,649
$905,101
$453,668
$3,856,571
$593,925
Year 1 Payback
672 to 1
287 to 1
144 to 1
1,224 to 1
119 to 1
Hotels/Motels
SAMPLE OF ACTUAL STUDY RESULTS
Asset Type
Hotel/Motel(High-Rise)
Hotel/Motel(High-Rise)
Hotel/Motel(Low-Rise)
Hotel/Motel(Low-Rise)
Hotel/Motel(Low-Rise)
Depreciable Basis
$23,383,870
$8,938,086
$2,798,000
$1,849,640
$8,704,872
Purchase Date
Nov-19
Sep-20
May-15
Dec-15
May-14
Year of Study
2020
2020
2020
2020
2020
1st Year Additional Depreciation
$7,172,943
$3,094,546
$895,309
$612,571
$2,757,115
1st Year Tax Savings
$2,653,989
$1,144,982
$331,264
$226,651
$1,020,133
Year 1 Payback
531 to 1
229 to 1
66 to 1
45 to 1
204 to 1
Office Buildings
SAMPLE OF ACTUAL STUDY RESULTS
Asset Type
OfficeBuilding(High-Rise)
OfficeBuilding(High-Rise)
OfficeBuilding(Low-Rise)
OfficeBuilding(Low-Rise)
OfficeCondominium
Depreciable Basis
$37,711,797
$46,821,979
$3,755,986
$6,209,720
$1,900,000
Purchase Date
Dec-19
Feb-20
Mar-19
Jun-20
Oct-20
Year of Study
2020
2020
2020
2020
2020
1st Year Additional Depreciation
$10,376,945
$8,263,488
$1,065,047
$1,473,628
$535,794
1st Year Tax Savings
$3,839,470
$3,057,491
$394,067
$545,242
$198,244
Year 1 Payback
768 to 1
612 to 1
79 to 1
109 to 1
40 to 1
Retail Centers
SAMPLE OF ACTUAL STUDY RESULTS
Asset Type
RetailMulti-Tenant
RetailSingle-Tenant
RetailSingle-Tenant
StripShoppingCenter
StripShoppingCenter
Depreciable Basis
$11,887,468
$7,324,000
$8,890,060
$11,285,689
$19,105,975
Purchase Date
Sep-20
Aug-19
Jun-20
Dec-18
Nov-19
Year of Study
2020
2020
2020
2020
2020
1st Year Additional Depreciation
$2,341,233
$2,250,145
$2,917,086
$3,819,473
$5,672,847
1st Year Tax Savings
$866,256
$832,554
$1,079,322
$1,413,205
$2,098,953
Year 1 Payback
173 to 1
167 to 1
216 to 1
283 to 1
420 to 1
Other Examples
SAMPLE OF ACTUAL STUDY RESULTS
Asset Type
AutoDealerFullService
FuneralHome
MedicalOffice
OfficeWarehouse
VeterinaryClinic
SelfStorage
Depreciable Basis
$4,475,000
$3,389,290
$10,484,216
$6,048,482
$12,454,560
$4,380,872
Purchase Date
Jul-20
May-20
Sep-19
Aug-20
Jun-20
Oct-19
Year of Study
2020
2020
2020
2020
2020
2020
1st Year Additional Depreciation
$1,606,128
$1,129,236
$3,951,231
$1,912,576
$3,523,528
$1,805,852
1st Year Tax Savings
$594,267
$417,817
$1,461,955
$707,653
$1,303,705
$668,165
Year 1 Payback
119 to 1
84 to 1
292 to 1
142 to 1
261 to 1
134 to 1
NOTE: The above listed results are based on the use of 100% bonus depreciation as outlined in the Tax Cuts and Jobs Act of 2018, and is based on taxpayers falling in the 37% tax bracket.