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Cost Segregation Benefits for Office Building Owners |
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Apartments - Hotels - Manufacturers - Offices - Restaurants - Retail Plazas - Warehouses An $8 million office building can be holding an abundant amount of untapped segregated assests that can save the owner a considerable amount of money. By depreciating any land improvements, various furnitures or fixtures, or office equipement in to 5, 7, or 15 year properties the owner can save $84,688 by conduction a Cost Segregation Study. Over a period of the first six years the owner would see a savings of $366,349 over a traditional straight-line deduction. | Cash Flow Increased in year 1 | $ | 84,688 | | Cash Flow Increased in year 1-6 | $ | 366,349 | | Net Present Value (NPV) | $ | 292,090 | | Combined Tax Rate | | 41% | | Net Present Value Factor | | 8% | | Asset Class | Percent
Reclassed |
| Depreciable
Basis | | 5 - Year Property | 14% | | 980,000 | | 7 - Year Property | 1% | | 70,000 | | 15 - Year Property | 6% | | 420,000 | | 39 - Year Property | 79.0% | | 5,530,000 | | Total Real Property | $ | 7,000,000 |
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