A cost segregation engineering review of building components and site improvements was performed on a three story, 42k sq. ft. office/warehouse brewery building in Oregon.
The site improvements include incoming utilities and a dock. The building extends to the property line on all sides and therefore owns no parking lot or service lanes.
The resulting benefit included a 12.39% reclassification of 39-year depreciation class life assets on the purchase and a 19.76% reclassification of 39-year class life assets on the improvements into 5 and 15 year class lives, resulting in an total accelerated benefit of $545,696.18 in reclassified assets.
| PURCHASE Class Life | Percentage | Accelerated Benefit |
| 5-Year | 10.97% | $225,393.94 |
| 15-Year | 1.42% | $29,140.12 |
| 39-Year | 87.61% | $1,800,630.73 |
| Total Building Cost | 100% | $2,055,164.79 |
| % amounts relate to how much was reallocated from the depreciated basis |
| IMPROVEMENTS Class Life | Percentage | Accelerated Benefit |
| 5-Year | 19.76% | $291,162.12 |
| 39-Year | 80.24% | $1,182,107.16 |
| Total Building Cost | 100% | $1,473,269.28 |
| % amounts relate to how much was reallocated from the depreciated basis |
Cost Segregation
Engineered Tax Services, Inc. (ETS) has helped thousands of property owners nationally increase their cash-flow by accelerating depreciation through our cost segregation studies. Our cost segregation studies work to uncover potential tax savings and increase cash flow through reclassification and depreciation of property. ETS provides a “Detailed Engineering” review as part of our reporting process, working seamlessly with the IRS and your CPA firm for minimal disruption to your business.
