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Cost Segregation Benefits for Apartment Complex Owners |
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Apartments - Hotels - Manufacturers - Offices - Restaurants - Retail Plazas - Warehouses Let’s say for example we have a $6 million apartment complex, by separating the business facility’s equipment over the 5, 7, and 15 year periods of depreciation, the apartments owner sees a tax benefit savings of $99,938 over a traditional straight depreciation method in the first year alone. | Cash Flow Increased in year 1 | $ | 99,938 | | Cash Flow Increased in year 1-6 | $ | 418,612 | | Net Present Value (NPV) | $ | 262,495 | | Combined Tax Rate | | 41% | | Net Present Value Factor | | 8% |
| Asset Class | Percent
Reclassed |
| Depreciable
Basis | | 5 - Year Property | 20% | | 1,200,000 | | 7 - Year Property | 1% | | 60,000 | | 15 - Year Property | 11% | | 660,000 | | 27.5 - Year Property | 68.0% | | 4,080,000 | | Total Real Property | $ | 6,000,000 |
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