$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|
|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|