Assisted Living Facilities / Nursing Home
Cost Segregation Studies
Assisted Living Facilities and Nursing Homes combine the best depreciation aspects of multifamily and restaurant assets.
Short life items are found in the interior of the units and the expansive common areas and food preparation and dining areas.
Significant parking, along with enhanced and well lighted garden / strolling areas provide short life assets on the exterior.
Our 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 assisted living studies to pay back the cost of the study by almost 50 to 1 in the first year of study use, though this varies with timing of the purchase and size of the asset. Note the actual results highlighted in the table below. You will see first year savings ranging from a modest $20,000 up to a staggering $220,000 plus!
Sample of Actual Study Results
Depreciable Basis
$9,469,248
$7,484,466
$23,544,000
$12,562,885
$4,989,211
Purchase Date
6/1/2013
10/1/2011
2/1/2015
6/1/2015
9/1/2014
Year of Study
2013
2011
2015
2015
2014
1st Year Additional Depreciation
$386,072
$60,009
$560,290
$404,799
$173,981
1st Year Tax Savings
$152,884
$21,003
$221,875
$157,871
$67,853
Year 1 Payback
45.2:1
6.5:1
81.6:1
51.8:1
22.2:1
Initial 5 Years Tax Savings
$683,132
$372,105
$1,053,215
$678,986
$272,969
5 Year Payback
203.0:1
117.0:1
388.0:1
224.0:1
90.5:1
* 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.