Cost Segregation Study On a $2.5 Million Office Building in Portland, Oregon

$662,914.87 in first year tax savings

A cost segregation study increased the first-year depreciation rate for this $2.5 million office building in Portland, Oregon (purchased in 2018) from $64,103 to $662,914, resulting in $662,914 in first-year tax savings.

Study Type Class LifePercentageAccelerated Tax
Cost Segregation 5-Year17.53%$450,290.31
Cost Segregation 15-Year7.72%$198,262.85
Cost Segregation39-Year74.75%$14,361.71
Total 1st Yr Depreciation with Cost Seg$662,914.87
Total 1st Yr Depreciation without Cost Seg$64,103.00
  
Total Difference in Depreciation 1st Year $598,811.80

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