$1,627,050.78 in Total Realized Tax Savings
By applying cost segregation, property investors accelerate depreciation, reduce tax liability and increase their bottom line. This aids in future benefits via abandonment, repairs, routine maintenance and overall asset management. ETS performs hundreds of cost segregation studies on a monthly basis for property owners, providing a detailed engineering review of assets including special purpose mechanical and electrical systems, decorative finishes, site improvements, and any process related to special purpose construction.
Class Life | Percentage | Accelerated Tax |
5-Year | 25.06% | $1,133,887.51 |
15-Year | 10.90% | $493,163.27 |
27.5-Year | 64.04% | $2,897,648.22 |
Total Realized Tax Benefits | 100% | $4,254,699.00 |
% amounts relate to how much was reallocated from the depreciated basis
Cost Segregation is based on a 40% tax bracket for federal and State Taxes and performed on the ADR Asset Depreciation Range. Financial benefits are realized by maximizing net present value through deferring tax payments and using increased cash flow to strengthen your portfolio or scale your business. The tables above identify the difference between a cost segregation study and traditional 39.5-year capitalization. The line graph (if shown) demonstrates the impact of investment cash.