$815,775.09 in first-year tax savings
Ordinarily, this $2.5 million retail pharmacy in Joliet, Illinois would have depreciated by $64,100 in the year it was purchased (2020). Instead of taking the straight-line depreciation rate, investors commissioned a cost segregation study to report the building’s depreciation rate more accurately on their taxes. This pushed the first-year depreciation value up to $879,800, which resulted in $815,775 in tax savings.
