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.|
|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|