Cost Segregation Case Study For Office Building in Miami, Florida

This Miami, Florida office building was purchased in 2018 for $3.3 million. Without a cost segregation study, it would have depreciated by $55,385 in the first year. Instead, investors applied a cost segregation study to accelerate first-year depreciation to $362,423.

Study Type (Office Building – Miami, FL)Class LifePercentageAccelerated Tax
Cost Segregation  5-Year17.22%$379,826.14
Cost Segregation15-Year15.06%$332,102.05
Cost Segregation39-Year67.72%



Total 1st Yr Depreciation with Cost Seg  



Depreciation 1st Yr without Cost seg 39-Year100%



Total Difference in depreciation 1st Year $686,867.19

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