Cost Segregation Study For Single Family Home, Cross Plains, Tennessee

single family home - cost segregation study

$46,951.42 in first year tax savings

Without a Cost Segregation Study, this $245,800 Single Family Home in Cross Plains, Tennessee purchased in 2020 would have generated first-year depreciation of approximately $9,100. By applying a Cost Segregation, the property investors accelerated depreciation for the first year to approximately $56,000.

Reclassification

This accelerated deprecation strategy allows the property investors to immediately reduce their tax liability and in turn, increase their bottom line by offsetting income. This detailed engineering-based Cost Segregation Study will also be used to help maximize improvements and renovation in addition to being used for potential savings with insurance premium costs and property tax appeals. 

A Cost Segregation study is an IRS approved federal income tax tool that increases near term cash flow by utilizing shorter recovery periods for depreciation to accelerate return on investment. For newly constructed, purchased or renovated properties and also retroactive generally over the last 10 years, building components are properly classified into individual units of property and accurate recovery periods for computing depreciation deductions. The study identifies with forensic engineering detail the immediate Bonus Depreciation 5, 7 and 15-year personal property class lives qualifying portions of a building that are normally buried in 27.5 year residential or 39 year commercial categories. 

Cost Segregation Study For Retail Property, Wesley Chapel, Florida

retail property - cost segregation study

$1,585,796.94 in first year tax savings

Without a Cost Segregation Study, this $3 Million Retail Property in Wesley Chapel, Florida purchased in 2020 would have generated first-year depreciation of approximately $76,900. By applying a Cost Segregation Study, the property investors accelerated depreciation for the first year to approximately $1.6 Million. 

This accelerated deprecation strategy allows the property investors to immediately reduce their tax liability and in turn, increase their bottom line by offsetting income. This detailed engineering-based Cost Segregation Study will also be used to help maximize improvements and renovation in addition to being used for potential savings with insurance premium costs and property tax appeals. 

A Cost Segregation study is an IRS approved federal income tax tool that increases near term cash flow by utilizing shorter recovery periods for depreciation to accelerate return on investment. For newly constructed, purchased or renovated properties and also retroactive generally over the last 10 years, building components are properly classified into individual units of property and accurate recovery periods for computing depreciation deductions. The study identifies with forensic engineering detail the immediate Bonus Depreciation 5, 7 and 15-year personal property class lives qualifying portions of a building that are normally buried in 27.5 year residential or 39 year commercial categories. 

Cost Segregation Study For Medical Offices, Myrtle Beach, South Carolina

cost segregation study medical offices

$816,972.02 in first year tax savings

Without a Cost Segregation Study, this $1.8 Million Medical Office Building in Myrtle Beach, South Carolina purchased in 2020 would have generated first-year depreciation of approximately $46,100. By applying a Cost Segregation, the property investors accelerated depreciation for the first year to approximately $863,100.

Reclassification

This accelerated deprecation strategy allows the property investors to immediately reduce their tax liability and in turn, increase their bottom line by offsetting income. This detailed engineering-based Cost Segregation Study will also be used to help maximize improvements and renovation in addition to being used for potential savings with insurance premium costs and property tax appeals. 

A Cost Segregation study is an IRS approved federal income tax tool that increases near term cash flow by utilizing shorter recovery periods for depreciation to accelerate return on investment. For newly constructed, purchased or renovated properties and also retroactive generally over the last 10 years, building components are properly classified into individual units of property and accurate recovery periods for computing depreciation deductions. The study identifies with forensic engineering detail the immediate Bonus Depreciation 5, 7 and 15-year personal property class lives qualifying portions of a building that are normally buried in 27.5 year residential or 39 year commercial categories. 

Cost Segregation Study For Car Dealership, Honea Path, South Carolina

auto dealership cost segregation study

$1,305,175.24 in first year tax savings

Without a Cost Segregation Study, this $2.6 Million Car Dealership in Honea Path, South Carolina purchased in 2020 would have generated first year depreciation of approximately $66,600. By applying a Cost Segregation Study, the property investors accelerated depreciation for the first year to approximately $1.3 Million. 

Reclassification​

This accelerated deprecation strategy allows the property investors to immediately reduce their tax liability and in turn, increase their bottom line by offsetting income. This detailed engineering-based Cost Segregation Study will also be used to help maximize improvements and renovation in addition to being used for potential savings with insurance premium costs and property tax appeals. 

A Cost Segregation study is an IRS approved federal income tax tool that increases near term cash flow by utilizing shorter recovery periods for depreciation to accelerate return on investment. For newly constructed, purchased or renovated properties and also retroactive generally over the last 10 years, building components are properly classified into individual units of property and accurate recovery periods for computing depreciation deductions. The study identifies with forensic engineering detail the immediate Bonus Depreciation 5, 7 and 15-year personal property class lives qualifying portions of a building that are normally buried in 27.5 year residential or 39 year commercial categories. 

Cost Segregation Study For Apartment Complex, Portland, Oregon

apartment building cost segregation study

$1,910,535.59 in first year tax savings

Without a Cost Segregation Study, this $4,745,000 Apartment Complex in Portland, Oregon purchased in 2021 would have generated first year depreciation of approximately $102,500. By applying a Cost Segregation Study, the property investors accelerated depreciation for the first year to approximately $2.0 Million. 

Reclassification​

This accelerated deprecation strategy allows the property investors to immediately reduce their tax liability and in turn, increase their bottom line by offsetting income. This detailed engineering-based Cost Segregation Study will also be used to help maximize improvements and renovation in addition to being used for potential savings with insurance premium costs and property tax appeals. 

A Cost Segregation study is an IRS approved federal income tax tool that increases near term cash flow by utilizing shorter recovery periods for depreciation to accelerate return on investment. For newly constructed, purchased or renovated properties and also retroactive generally over the last 10 years, building components are properly classified into individual units of property and accurate recovery periods for computing depreciation deductions. The study identifies with forensic engineering detail the immediate Bonus Depreciation 5, 7 and 15-year personal property class lives qualifying portions of a building that are normally buried in 27.5 year residential or 39 year commercial categories. 

179D Benefit and Cost Segregation for an Auto Dealership in Omaha Nebraska

$756,076.76 in Additional Tax Savings

Private Buildings and Owner Benefits


By applying cost segregation, property investors accelerate depreciation, reduce tax liability and increase their bottom line. This aids in future benefits via abandonment, repairs, routine maintenance and overall asset management. ETS performs hundreds of cost segregation studies on a monthly basis for property owners, providing a detailed engineering review of assets including special purpose mechanical and electrical systems, decorative finishes, site improvements, and any process related to special purpose construction.

Study TypeAccelerated Tax
Previous Non-ETS Cost Segregation Analysis$514,880.00
ETS Revised Cost Segregation Analysis$716,999.96
179D Energy$39,076.90
Total Building Cost $756,076.76

% amounts relate to how much was reallocated from the depreciated basis

Cost Segregation is based on a 40% tax bracket for federal and State Taxes and performed on the ADR Asset Depreciation Range. Financial benefits are realized by maximizing net present value through deferring tax payments and using increased cash flow to strengthen your portfolio or scale your business. The tables above identify the difference between a cost segregation study and traditional 39.5 year capitalization. The line graph (if shown) demonstrates the impact of investment cash.

 

179D Energy Tax Benefit for a Parking Garage Owner

LocationLightingSquare FootageAccelerated Tax Benefit
Peoria, AZ $0.6040,920$24,552.00
Helenda, MT $0.6091,725$55,035.00
Temecula, CA $0.60135,380$81,228.00
Brooklyn, NY$0.60135,901$81,540.60
Davie, FL$0.60258,242$154,945.20
Total  $397,300.80
 

179D Energy Policy Act

The 179D energy certification calculates the tax deduction achieved from the installation of energy-efficient assets, including HVAC, building envelope, and lighting. The building may qualify for up to $1.80 per square foot ($0.60 per square foot for each system); however, partial deductions are allowed for lighting.  The 179D energy deduction is available for newly constructed or energy renovated commercial buildings as well as apartment buildings 4 stories or more. Commercial property owners who pay taxes can claim the benefit with the exception of government-owned buildings where the tax deduction may be allocated to the designer. In order to qualify for these deductions, an analysis of your energy savings is required by a qualified firm like Engineered Tax Services. The savings are significant can additional tax benefits are often identified through the engineering process.  Contact ETS for more information.

179D Energy Study for a Parking Garage in Davie, Florida

$154,945.20 in Total Realized Tax Savings


LocationLightingSquare FootageTax Benefit
Davie, FL $0.60 258,242$154,945.20
Total $154,945.20
The facility utilizes a variety of lighting fixtures throughout the structure. The qualifying parking areas have automatic time clock on/off controls integrated into the electrical panels to conserve energy.
 

179D Energy Policy Act

The 179D energy certification calculates the tax deduction achieved from the installation of energy-efficient assets, including HVAC, building envelope, and lighting. The building may qualify for up to $1.80 per square foot ($0.60 per square foot for each system); however, partial deductions are allowed for lighting.  The 179D energy deduction is available for newly constructed or energy renovated commercial buildings as well as apartment buildings 4 stories or more. Commercial property owners who pay taxes can claim the benefit with the exception of government-owned buildings where the tax deduction may be allocated to the designer. In order to qualify for these deductions, an analysis of your energy savings is required by a qualified firm like Engineered Tax Services. The savings are significant can additional tax benefits are often identified through the engineering process.  Contact ETS for more information.

s, an analysis of your energy savings is required by a qualified firm like Engineered Tax Services. The savings are significant can additional tax benefits are often identified through the engineering process.  Contact ETS for more information.

179D EPACT & Disposition Studies for a Parking Garage in Louisiana

Study Type PercentageSquare FootageBenefit Amount
Disposition/Abandonment N/A N/A$94, 259.12
179D 66.14% 260,000$156, 000.00
Total $250, 259.12

The qualifying interior lighting systems that were incorporated into the building were found to meet and exceed the requirements for EPAct 2005. The lighting systems incorporated into the building were found to reduce the lighting power density by a 66.14%.

Upon further evaluation, ETS identified and assigned value to the building improvements for lighting that have been removed and replaced to enhance energy efficiency, maintain savings, and improve the quality of the lights. The retired assets were identified, valued, and discounted for the depreciation taken.

 

179D Energy Policy Act

The 179D energy certification calculates the tax deduction achieved from the installation of energy-efficient assets, including HVAC, building envelope, and lighting. The building may qualify for up to $1.80 per square foot ($0.60 per square foot for each system); however, partial deductions are allowed for lighting.  The 179D energy deduction is available for newly constructed or energy renovated commercial buildings as well as apartment buildings 4 stories or more. Commercial property owners who pay taxes can claim the benefit with the exception of government-owned buildings where the tax deduction may be allocated to the designer. In order to qualify for these deductions, an analysis of your energy savings is required by a qualified firm like Engineered Tax Services. The savings are significant can additional tax benefits are often identified through the engineering process.  Contact ETS for more information.

 

Disposition

When you undertake demolition or renovate a building and tear out old lighting, HVAC units, and other building parts, these assets are disposed of. As such, their book value can be treated as a business deduction. Tangible personal property within a structure can be written off when a building is demolished or remodeled.  The value must have been identified prior to the demolition and it must not have been purchased with the intent to demolish. Learn more about the disposition studies here or visit our disposition calculator here.

179D Tax Benefit for an Architectural Firm

LocationSquare FootageTax Benefit
Colorado State University – Aspen Hall Student Housing66,392$19,505.60
Colorado State Universit – Indoor Practice Facility66,267$79,520.40
North Aztlan Community Center48,741$87,733.80
Total $286,759.80
“Thank you for preparing our EPAct certifications for the Aztlan Center, the Indoor Practice Facility, and Aspen Hall. I was very pleased with the thoroughness and quality presentation of the final product. In addition, I found the staff at Engineered Tax Services to be professional, patient and responsive during the entire process that was foreign to us. We felt strongly that we, as professionals, can have a large influence in the environmental impact of the facilities we design. We greatly appreciate your help in achieving these goals and have already begun to see the rewards of your efforts.” Michael L. Aller, AIA, LEED APAller Lingle Massey ArchitectsFt. Collins, Colorado
 

179D Energy Policy Act

The 179D energy certification calculates the tax deduction achieved from the installation of energy-efficient assets, including HVAC, building envelope, and lighting. The building may qualify for up to $1.80 per square foot ($0.60 per square foot for each system); however, partial deductions are allowed for lighting.  The 179D energy deduction is available for newly constructed or energy renovated commercial buildings as well as apartment buildings 4 stories or more. Commercial property owners who pay taxes can claim the benefit with the exception of government-owned buildings where the tax deduction may be allocated to the designer. In order to qualify for these deductions, an analysis of your energy savings is required by a qualified firm like Engineered Tax Services. The savings are significant can additional tax benefits are often identified through the engineering process.  Contact ETS for more information.