Checking all available options...

Cost Segregation Study

Cost Segregation Study case studies show actual savings realized by O’Connor clients

O’Connor has performed thousands of cost segregation studies on commercial property assets nationwide and abroad. Following are representative cost segregation studies of various asset types, with typical results.

apartment cost segregation

Case #1 Garden Apartment

A typical garden apartment asset in a major Texas metropolitan area, constructed in the early 1980’s, with 225 units and surface parking.

Improvement basis for the asset is $8,250,000. The study included two years of catch-up depreciation.

Year of Purchase Year of Study 1st Year Additional Depreciation 1st Year Tax Savings Initial 5 Years
2013 2015 $1,536,853 $608,594 $774,974

Case #2 Hospitality

A typical hospitality asset in a major Arizona metropolitan area, constructed in the mid 2000’s, with 90 rooms and surface parking. Improvement basis for this asset is $6,800,000.

Year of Purchase Year of Study 1st Year Additional Depreciation 1st Year Tax Savings Initial 5 Years
2015 2015 $386,824 $153,182 $719,294

office building cost segregation

Case #3 Office Building

A typical low-rise office building in a major Massachusetts metropolitan area, constructed in the mid 1980’s, with a total building area of 98,000 square feet. Improvement basis for this asset is $1,600,000.

Year of Purchase Year of Study 1st Year Additional Depreciation 1st Year Tax Savings Initial 5 Years
2016 2016 $51,442 $20,371 $109,934

Case #4 Industrial / Office Warehouse

A typical industrial /office warehouse facility in Colorado, constructed in the mid 1980’s, with a total building area of 30,000 square feet. Improvement basis for this asset is $2,500,000.

Year of Purchase Year of Study 1st Year Additional Depreciation 1st Year Tax Savings Initial 5 Years
2016 2016 $86,856 $34,395 $189,746

Case #5 Shopping Center

A typical neighborhood shopping center in North Carolina, constructed in the late 1980’s, with a total building area of 100,000 square feet. Improvement basis for this asset is $19,000,000. Note that this was a fourth quarter purchase, so the mid-quarter depreciation methodology was utilized.

Year of Purchase Year of Study 1st Year Additional Depreciation 1st Year Tax Savings Initial 5 Years
2015 2015 $242,326 $95,961 $1,651,836

ExpertCostSeg.com

Get Your Copy of Our Award Winning Whitepaper, “How To Use The New Tax Plan To Reduce Or Eliminate Your Income Taxes”
  • This field is for validation purposes and should be left unchanged.