$3,949,404.10 in first year tax savings
This office building in Palm Beach, Florida, purchased in 2018 for $14.8 million, was set to generate a first-year depreciation of $224,559. However, instead of using the standard straight-line method, property investors conducted a cost segregation study to increase first-year depreciation to $2,836,209. Our engineers also added a $1,113,194 deduction for repairs and maintenance, bringing the total first-year tax savings to $3,949,404.
| Study Type (Office Building – Palm Beach, FL) | Class Life | Percentage | Accelerated Tax |
| Cost Segregation | 5-Year | 9.19% | $147,381.49 |
| Cost Segregation | 15-Year | 14.95% | $913,846.87 |
| Cost Segregation | 39-Year | 72.97% | $1,774,981.29 |
| Repairs & Maintenance Expense | 100% | $1,113,194.45 | |
| Total 1st Yr Depreciation with Cost Seg and R&M | $3,949,404.10 | ||
| Depreciation 1st Yr without Cost seg | 39-Year | 0% | $224,559.29 |
| Total Difference in depreciation 1st Year and R&M | $3,724,844.81 |
