Cost Segregation study on a $392,000 Apartment Building in Hillsborough, NH

Without a Cost Segregation study, a $392,000 Apartment Building in Hillsborough, NH, purchased in 2019 would have generated a 1st year depreciation of $8,469.14. By applying a cost segregation study, the property investors accelerate depreciation, for the 1st year to $85,343.19. 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.

$76,874.05 in 1st year Tax Savings Purchase

Study TypeClass Life% Re-ClassedAccelerated Tax 1st Yr.
Cost Segregation5-Year 17.02%$9,089.97
Cost Segregation15-Year2.43%$9,515.89
Cost Segregation27.5-Year80.55%$66,727.33
Total 1st Yr Depreciation with Cost Seg  $85,343.19
Depreciation 1st Year without Cost Seg.27.5-Year100%$8,469.14
Total Difference in Depreciation 1st Year  $76,874.05