Cost Segregation Study On a $14 Million Dollar Office Building in Rochester, NY

$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 LifePercentageAccelerated Tax
Cost Segregation 5-Year12.94%$2,491,490.83
Cost Segregation 15-Year18.06%$1,785,768.74
Cost Segregation39-Year69.00%$132,197.38
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