Cost Segregation study on a $983,000 Apartment Building in Concord, NH

Without a Cost Segregation study, a $983,000 Apartment Building in Concord, NH, purchased in 2019 would have generated a 1st year depreciation of $21,237.66. By applying a cost segregation study, the property investors accelerate depreciation, for the 1st year to $417,030.77. This acceleration in deprecation allows the property investors to reduce their tax liability and in turn increase their bottom line. By breaking down the building asset into components, a cost segregation also aids in future benefits of abandonment, repairs, routine maintenance and overall asset management. ETS performs hundreds of cost segregation studies monthly 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.

$395,793.11 in 1st year Tax Savings Purchase

Study Type Class Life % Re-Classed Accelerated Tax 1st Yr.
Cost Segregation 5-Year 42.34% $416,171.95
Cost Segregation 15-Year 0.00% $0.00
Cost Segregation 27.5-Year 57.66% $858.82
Total 1st Yr Depreciation with Cost Seg $417,030.77
Depreciation 1st Year without Cost Seg. 27.5-Year 100% $21,237.66
Total Difference in Depreciation 1st Year $395,793.11