Cost Segregation study on a $1.4 Million Apartment Building in Claremont, NH

$290,179.76 in 1st year Tax Savings

Without a Cost Segregation study, a $1.4 Million Apartment Building in Claremont, NH, purchased in 2019 would have generated a 1st year depreciation of $30,246.91. By applying a cost segregation study, the property investors accelerate depreciation, for the 1st year to $320,426.67. 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.

$290,179.76 in 1st year Tax Savings Purchase

Study Type Class Life % Re-Classed Accelerated Tax 1st Yr.
Cost Segregation 5-Year  20.25% $284,088.59
Cost Segregation 15-Year 2.47% $34,694.98
Cost Segregation 27.5-Year 77.28% $1,643.10
Total 1st Yr Depreciation with Cost Seg     $320,426.67
Depreciation 1st Year without Cost Seg. 27.5-Year 100% $30,246.91
Total Difference in Depreciation 1st Year     $290,179.76