Without a Cost Segregation study, a $1.4 Million Apartment Building in Claremont, NH, purchased in 2019 would have generated a 1st year depreciation of $30,246.91. By applying a cost segregation study, the property investors accelerate depreciation, for the 1st year to $320,426.67. 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.
$290,179.76 in 1st year Tax Savings Purchase
| Study Type | Class Life | % Re-Classed | Accelerated Tax 1st Yr. |
| Cost Segregation | 5-Year | 20.25% | $284,088.59 |
| Cost Segregation | 15-Year | 2.47% | $34,694.98 |
| Cost Segregation | 27.5-Year | 77.28% | $1,643.10 |
| Total 1st Yr Depreciation with Cost Seg | $320,426.67 | ||
| Depreciation 1st Year without Cost Seg. | 27.5-Year | 100% | $30,246.91 |
| Total Difference in Depreciation 1st Year | $290,179.76 |
