Cost Segregation Benefits for Retail Plazas

Apartments - Hotels - Manufacturers - Offices - Restaurants - Retail Plazas - Warehouses

A Retail plaza / shopping center that costs a total of $4 million will save $39,732 over  straight-line depreciation in the first year alone. A plaza or center will also save in total over the first 6 years $184,016 over  straight-line depreciation. 

Cash Flow Increased in year 1 $ 39,732
Cash Flow Increased in year 1-6 $ 184,015
Net Present Value (NPV) $ 158,053
Combined Tax Rate   41%
Net Present Value Factor   8%

 

Asset Class Percent
Reclassed
Depreciable
Basis
5 - Year Property 9%   360,000
7 - Year Property 3%   120,000
15 - Year Property 10%   400,000
39 - Year Property 78.0%   3,120,000
Total Real Property  $ 4,000,000