Cost Segregation study on a $2.6 Million Apartment Building in Jenks, OK

$1,121,899.07 in 1st year Tax Savings

Without a Cost Segregation study, a $2.6 Million Apartment Building in Jenks, OK, purchased in 2019 would have generated a 1st year depreciation of $38,888.89. By applying a cost segregation study, the property investors accelerate depreciation, for the 1st year to $1,160,787.96. 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.

$1,121,899.07 in 1st year Tax Savings Purchase

Study Type Class Life % Re-Classed Accelerated Tax 1st Yr.
Cost Segregation 5-Year  32.60% $852,169.40
Cost Segregation 15-Year 10.86% $283,986.57
Cost Segregation 27.5-Year 56.54% $24,631.99
Total 1st Yr Depreciation with Cost Seg     $1,160,787.96
Depreciation 1st Year without Cost Seg. 27.5-Year 100% $38,888.89
Total Difference in Depreciation 1st Year     $1,121,899.07