$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|
|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