$884,318.78 in first year tax savings
This apartment building in Stanton, California was purchased in 2021 for $2.3 million. Taking the straight-line depreciation rate, it was set to depreciate by $85,100 in the first year. Instead, investors accelerated first-year depreciation to $969,500 by applying a cost segregation study. This saved them $884,318 on first-year taxes.