Recent Case Studies
Recent Case Studies
See the Impact of Strategic Cost Segregation
Explore real-world examples of how Cost Segregation Consultants has helped property owners uncover accelerated depreciation opportunities, improve cash flow, and maximize the value of their real estate investments.
APARTMENT COMPLEX
Case Study 1
About This Study
The cost segregation study for the apartment building resulted in a significant total asset reallocation of 31%, providing the client with substantial financial advantages. By reclassifying building components into shorter and longer depreciation periods and accurately assessing common area amenities such as the pool and gym, the study effectively reduced the client's tax liability. This increased liquidity not only improved cash flow but also significantly contributed to the client's overall financial strategy, making the cost segregation study an invaluable tool for optimizing their investment in the apartment building.
Features
- 185 Unit Apartment Complex
- Las Vegas, NV185 Unit Apartment Complex
- 183,440 Total Square Feet
- 4.5 Total Acres
- Property Building Basis: 24.7M
- Total Asset Reallocation of 31%
- Accelerated Depreciation of 7.5M
APARTMENT COMPLEX
Case Study 2
About This Study
The cost segregation study for the apartment building within the Tenants-in-Common (TIC) partnership is now complete. This analysis reclassified approximately 40% of the building's basis as short-life property, promising accelerated depreciation deductions and resulting in increased cash flow and a higher return on investment for the partners.
The study meticulously adhered to IRS guidelines and included legally binding agreements to fairly allocate tax benefits among the partners and outline exit strategies. In summary, the study effectively optimized the TIC partnership's real estate investment's tax advantages and solidified its financial foundation.
Features
- 832 Unit Apartment Complex
- Las Vegas, NV
- 723,960 Total Square Feet
- 43.23 Total Acres
- Property Building Basis: 156.1M
- Total Asset Reallocation of 40%
- Accelerated Depreciation of 62.4M
RETAIL STRIP MALL
Case Study 3
About This Study
When addressing a strip mall, the implementation of a cost segregation study resulting in a 30% reclassification of assets can lead to a considerable increase in basis due to inheritance. This, in turn, results in substantial tax savings, which can be strategically deployed for investments in various opportunities. These opportunities may include potential enhancements to the strip mall property, thereby augmenting its value and income potential. This underscores the advantages of cost segregation in optimizing tax strategies and promoting judicious asset management for inherited commercial properties.
Features
- Phoenix, AZ
- 200,000 Total Square Feet
- 14 Total Acres
- Property Building Basis: 12M
- Total Asset Reallocation of 30%
- Accelerated Depreciation of 3.7M
RETAIL STRIP MALL
Case Study 4
About This Study
The building owner in Salt Lake City, Utah, expressed immense satisfaction with the results of the cost segregation study. Achieving a 30% acceleration in depreciation not only delivered substantial tax savings but also provided additional capital for property improvements. This outcome left them highly pleased with the financial advantages gained through cost segregation, reinforcing the strategy's effectiveness in optimizing their property investment.
Features
- Salt Lake City, UT
- 15,000 Total Square Feet
- 43.23 Total Acres
- Property Building Basis: 2.7M
- Total Asset Reallocation of 30%
- Accelerated Depreciation of 810,000
MEDICAL OFFICE BUILDING
Case Study 5
About This Study
Our cost segregation analysis of a medical office building in Southern California has demonstrated its financial viability, resulting in an accelerated depreciation benefit exceeding $1 million. As seasoned accounting professionals, our team possesses advanced expertise in the reclassification of specialized medical assets, such as medical gas manifolds and advanced lighting systems.
We serve as tax code specialists, adeptly navigating the complexities of healthcare-related guidelines while optimizing your tax savings. If your objective is to safeguard the fiscal health of your investments and align them with the excellence of your healthcare practice, we are the premier choice for medical real estate transactions.
Features
- Medical/Surgical Center
- Los Angeles, CA
- 10,000 Total Square Feet
- 1.5 Total Acres
- Property Building Basis: 2.9M
- Total Asset Reallocation of 35%
- Accelerated Depreciation of 1.01M
MEDICAL OFFICE BUILDING
Case Study 6
About This Study
A surgical center in Phoenix, Arizona, achieved an impressive 1.5 million in accelerated depreciation, thanks to our unique blend of tax and engineering knowledge. Using our deep expertise, we strategically reclassified high-value items in crucial areas like surgery rooms, nurse stations, and recovery zones, categorizing them as personal property.
With our precise tax strategies, we prove that every decision can result in significant tax savings. Our tailored approach ensures that your financial well-being is in safe hands.
Features
- Medical/Surgical Center
- Phoenix, AZ
- 32,000 Total Square Feet
- 1.5 Total Acres
- Property Building Basis: 4M
- Total Asset Reallocation of 38%
- Accelerated Depreciation of 1.5M
RESIDENTIAL RENTAL
Case Study 7
About This Study
The cost segregation analysis for this high-end rental property, distinguished by substantial interior enhancements and land improvements, was conducted with the primary objective of optimizing tax benefits. A significant 54% asset reallocation was executed, facilitating accelerated tax deductions for items such as top-tier kitchen appliances, custom millwork, and premium finishes.
This strategic approach not only bolstered cash flow and lowered taxable income but also heightened the property's competitive edge in the rental market, all while ensuring strict adherence to tax regulations.
Features
- Single Family Home
- St. George, UT
- 8,000 Total Square Feet
- 2 Total Acres
- Property Building Basis: 3M
- Total Asset Reallocation of 54%
- Accelerated Depreciation of 1.6M
RESIDENTIAL RENTAL
Case Study 8
About This Study
A cost segregation analysis conducted on a single-family residential rental home yielded a substantial 39% reclassification of its asset value, facilitating an accelerated first-year deduction. This approach involves reclassifying components like electrical systems and plumbing as shorter-lived assets, reducing their depreciation timeline from the standard 27.5 years for residential properties.
As a result, the homeowner experienced significant tax savings by lowering their taxable income. Cost segregation studies provide a tax-efficient strategy for residential rental property owners, enhancing cash flow, ROI, and financial benefits, while remaining compliant with IRS regulations.
Features
- Single Family Home
- St. George, UT
- 5,500 Total Square Feet
- 0.5 Total Acres
- Property Building Basis: 1.54 M
- Total Asset Reallocation of 39%
- Accelerated Depreciation of 660,000
RESIDENTIAL RENTAL
Case Study 9
About This Study
In Austin, Texas, a residential property owner decided to undertake a cost segregation analysis. The outcome proved to be highly noteworthy, with 29% of the property's value successfully identified for tax savings.
This achievement was made possible through the strategic reclassification of components, including electrical systems and plumbing, enabling an accelerated depreciation schedule, departing from the conventional 27.5-year timeframe applied to residential properties.
This case exemplifies the substantial financial benefits that cost segregation studies offer to residential rental property owners while ensuring full compliance with IRS regulations.
Features
- Single Family Home
- Austin, TX
- 3,000 Total Square Feet
- 0.25 Total Acres
- Property Building Basis: 750,000
- Total Asset Reallocation of 29%
- Accelerated Depreciation of 218,000
RESIDENTIAL RENTAL
Case Study 10
About This Study
In the picturesque coastal city of Myrtle Beach, South Carolina, an Airbnb rental property underwent a comprehensive cost segregation study. This meticulously executed analysis resulted in the reclassification of 26% of the property's depreciable tax basis, thereby yielding substantial tax savings.
This achievement was made possible by expediting the depreciation of assets, including furnishings and structural elements, consequently leading to a notable reduction in the property owner's taxable income.
In the appealing locale of Myrtle Beach, cost segregation presents a lucrative strategy for Airbnb hosts. This approach ensures higher financial returns and compliance with tax regulations, particularly in sought-after tourist destinations like Myrtle Beach.
Features
- Single Family Home
- Myrtle Beach, SC
- 2,000 Total Square Feet
- 0.18 Total Acres
- Property Building Basis: 580,000
- Total Asset Reallocation of 26%
- Accelerated Depreciation of 150,800
RESIDENTIAL RENTAL
Case Study 11
About This Study
In the vibrant city of Miami, Florida, an Airbnb property underwent a meticulously conducted cost segregation study. This strategic initiative resulted in the redefinition of a significant portion of the tax basis, affording the property owner substantial first-year tax savings.
This achievement was made possible through the accelerated depreciation of assets, including furnishings, appliances, and structural elements, resulting in a notable reduction in the property owner's taxable income.
The adoption of this approach proves particularly advantageous for Airbnb hosts in Miami, as it taps into significant tax savings within the context of a prime vacation destination.
Features
- Single Family Rental Airbnb
- Miami, FL
- 1,600 Total Square Feet
- 0.16 Total Acres
- Property Building Basis: 590,000
- Total Asset Reallocation of 25%
- Accelerated Depreciation of 148,000
FLEX SPACE WAREHOUSE
Case Study 12
About This Study
A comprehensive cost segregation study was conducted on a flex space warehouse located in Salt Lake City, Utah. This study successfully reclassified approximately 20% of the warehouse's assets, resulting in accelerated depreciation deductions for critical elements, including electrical systems, lighting fixtures, HVAC units, and interior enhancements.
This strategic approach serves to reduce taxable income, thereby diminishing tax liability and increasing cash flow, ultimately enhancing the property's financial performance and return on investment.
The use of cost segregation studies represents a valuable strategic tool for optimizing tax benefits and enhancing profitability within real estate investments.
Features
- Salt Lake City, UT
- 50,000 Total Square Feet
- 3.6 Total Acres
- Property Building Basis: 3.5M
- Total Asset Reallocation of 20%
- Accelerated Depreciation of 700,000
FLEX SPACE WAREHOUSE
Case Study 13
About This Study
A recent comprehensive cost segregation analysis conducted on a flex space warehouse in Salt Lake City resulted in the reclassification of 24% of the warehouse's assets. This meticulous reclassification encompassed critical components such as electrical systems, lighting fixtures, HVAC units, and interior improvements.
Through this strategic reclassification, the property owner gains access to accelerated depreciation deductions, effectively reducing taxable income and associated tax liability.
This approach contributes to increased cash flow, higher return on investment, and an overall improvement in the property's financial performance. Consequently, it is a valuable and instrumental strategy for maximizing profitability in the realm of commercial real estate.
Features
- Salt Lake City, UT
- 30,000 Total Square Feet
- 1.4 Total Acres
- Property Building Basis: 2.2M
- Total Asset Reallocation of 24%
- Accelerated Depreciation of 528,000
APARTMENT COMPLEX WITH 1031 EXCHANGE
Case Study 14
About This Study
Many of our clients utilize multiple tax strategies to maximize tax benefits for their investment properties. In this case, our client utilized both a 1031 exchange to defer tax gains, along with a cost segregation study to minimize the remaining tax burden.
Overall, the client was able to defer about $50 million in gains and accelerate $21 million of the replacement property. When both strategies are utilized correctly by seasoned professionals, a substantial positive outcome is achieved. These strategies require a deep understanding of tax laws and regulations, and our team of experts is dedicated to helping clients navigate the complex world of real estate taxation, delivering comprehensive solutions that not only protect and grow our clients' investments but also contribute to their overall financial goals.
Features
Denver, Colorado apartment complex situated on 25 acres, offering 250 units.
- Pre 1031 Exchange Basis:
- Building: 90 Million
- Land: 10 Million
- Post 1031 Exchange Reduced Basis:
- Building: 45 Million
- Land: 5 Million
- Total Costs Tied to Study: 58 M
- Total Segregated Costs: 35%
- Accelerated Depreciation of 21 M