$1,300,000 in first year tax savings
Without a cost segregation study, this retail building in Spring, Texas (purchased in 2018 for $7.7 million) would have generated $197,400 in first-year depreciation. By applying a cost segregation study, investors were able to more accurately determine the depreciation rate of real estate components. This accelerated the first-year depreciation rate to $1.3 million and provided them with $1,300,000 in first-year tax savings.
