Cost Segregation Michigan
Cost Segregation Study Results
Michigan is the only state in the nation composed of two peninsulas. The good news is that we love working on
peninsulas! Whether in the Detroit – Ann Arbor area in the southeast, or over to Grand Rapids on the west coast, or even up near Cheboygan on the northern tip of the mitten, we are ready to provide
cost segregation services to help you retain more of your profits by paying less federal taxes.
Michigan enjoys a diverse economy though it is widely known as the center of the U.S,
auto industry. Beyond being the home to the country’s three major auto companies, the lower peninsula is a center for manufacturing, agriculture and the high-tech industry. Additionally, tourism is a $17 billion plus a year business, as travelers flock to the almost 50,000 square miles of forests, almost innumerable lakes, and thousands of miles of sandy beaches.
Hunting and fishing are significant industries, contributing more than $2 billion annually to its economy. The Upper Peninsula is a mecca for nature lovers and a storehouse of natural resources.
If you are lucky enough to own commercial assets in Michigan, let us help you enhance your cash flow by
reducing your federal tax burden through the use of our cost segregation studies. Whether we are enjoying an ice cold bottle of Vernors pop in Detroit, or a hot pasty in the U.P., we love working in Michigan!
Sample of Actual Study Results
Asset Type
Medical Office Multifamily Restaurant Retail Warehouse
Depreciable Basis
$2,265,239 $8,557,381 $2,150,000 $4,815,243 $3,154,044
Purchase Date
09/01/14 12/01/15 10/01/15 03/01/15 12/01/14
Year of Study
2014 2015 2015 2015 2015
1st Year Additional Depreciation
$116,256 $995,209 $18,840 $125,963 $948,096
1st Year Tax Savings
$46,037 $394,103 $1,469 $49,881 $375,446
Year 1 Payback
15.2:1 145.0:1 1.2:1 17.6:1 124.3:1
Initial 5 Years Tax Savings
$199,867 $524,576 $136,055 $250,631 $662,298
5 Year Payback
67.2:1 194.0:1 23.7:1 89.3:1 219.3:1* 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.
***Results include bonus depreciation first year calculations.
NOTE: The above listed tax savings are based on a 39.6% tax rate for the owner.
