$4,409,456.95 in first year tax savings
Purchased in 2018 for $14 million, this office building in Rochester, New York would have generated a first-year depreciation of $309,208 without a cost segregation study. Instead of taking the straight-line depreciation rate, investors applied a cost segregation study to accelerate first-year depreciation to $4,409,456. This saved them $4,409,456 on taxes.
| Study Type | Class Life | Percentage | Accelerated Tax |
| Cost Segregation | 5-Year | 12.94% | $2,491,490.83 |
| Cost Segregation | 15-Year | 18.06% | $1,785,768.74 |
| Cost Segregation | 39-Year | 69.00% | $132,197.38 |
| Total 1st Yr Depreciation with Cost Seg | $4,409,456.95 | ||
| Total 1st Yr Depreciation without Cost Seg | $309,208.00 | ||
| Total Difference in Depreciation 1st Year | $4,100,248.95 |
% amounts relate to how much was reallocated from the depreciated basis
