Cost Segregation study on a $392,000 Apartment Building in Hillsborough, NH

$76,874.05 in 1st year Tax Savings

Without a Cost Segregation study, a $392,000 Apartment Building in Hillsborough, NH, purchased in 2019 would have generated a 1st year depreciation of $8,469.14. By applying a cost segregation study, the property investors accelerate depreciation, for the 1st year to $85,343.19. 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.

$76,874.05 in 1st year Tax Savings Purchase

Study Type Class Life % Re-Classed Accelerated Tax 1st Yr.
Cost Segregation 5-Year  17.02% $9,089.97
Cost Segregation 15-Year 2.43% $9,515.89
Cost Segregation 27.5-Year 80.55% $66,727.33
Total 1st Yr Depreciation with Cost Seg     $85,343.19
Depreciation 1st Year without Cost Seg. 27.5-Year 100% $8,469.14
Total Difference in Depreciation 1st Year     $76,874.05