Office Buildings
Cost Segregation Studies
Office Buildings typically incorporate many short life components. Our office buildings
cost segregation studies consider all office suites and all common areas within the building when identifying these items.
Additional
opportunities are found in the lighted parking areas or parking structures, landscaping and building signage. Our studies also break out the IRS mandated Units of Property when considering the
long-term components present in your building.
Our
cost segregation for commercial real estate, such as office buildings, typically results in a payback that covers the cost of the study in the range of
3 to 1 up to more than 75 to 1 in the first year of study use. Note the actual results highlighted in the table below. First year savings range from almost $15,000 for a modestly sized office building up to in excess of
$225,000 for a large asset!
Sample of Actual Study Results
Depreciable Basis
$804,750 $3,692,689 $32,645,232 $7,939,100 $2,588,645
Purchase Date
JUN 2015 JLY 2015 JLY 2015 AUG 2015 MAY 2015
Year of Study
2015 2015 2015 2015 2015
1st Year Additional Depreciation
$43,868 $57,359 $576,486 $134,820 $102,018
1st Year Tax Savings
$14,633 $20,005 $225,580 $50,209 $37,379
Year 1 Payback
3.3:1 6.7:1 75.2:1 16.7:1 12.5:1
Initial 5 Years Tax Savings
$72,671 $22,433 $249,979 $214,331 $173,782
5 Year Payback
16.1:1 7.5:1 83.3:1 71.4:1 57.9:1* 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.
