Cost Segregation Nevada, CA
Cost Segregation Study Results
O’Connor Cost Segregation produces numerous studies in Nevada each year, with those primarily provided for assets in the greater Las Vegas and/or Reno areas. Our goal is to make sure that whatever is earned in Nevada, stays in Nevada, rather than being sent to Washington D.C.!
Nevada is the 7th largest state in the nation in terms of sheer size, but the topography and climate combine to cap its population at less than 3,000,000, placing it as only the 35th most populous state. Almost 75% of the population lives in Clark County which contains Las Vegas. The economy of Nevada is dominated by tourism, primarily centered around the casino and gaming industry.
Additionally, Nevada has by far the most hotel rooms per capita in the entire nation. It has a hotel room per every 14 state residents, far outpacing the national average of on hotel room per every 67 residents.
Outside of the heavily populated portions of the state, mining and cattle ranching play important roles in the rural economy. From the capital in Carson City, and nearby Reno in the northwest, down to the greater Las Vegas area in the arid south, the state of Nevada offers awesome investment opportunities. In turn, those assets provide a perfect chance to utilize cost segregation to reduce your federal taxes. O’Connor Cost Segregation is active in the area year-round, and would love the opportunity to earn your business!
Sample of Actual Study Results
Asset Type
Hotel
Multifamily
Office
Office
Retail Strip Center
Depreciable Basis
$8,292,875
$11,232,000
$712,638
$2,443,377
$3,268,585
Purchase Date
05/01/14
12/01/15
02/01/13
08/01/13
08/01/13
Year of Study
2015
2015
2013
2013
2013
1st Year Additional Depreciation
$1,186,211
$134,298
$29,033
$86,388
$263,873
1st Year Tax Savings
$469,739
$53,182
$11,497
$34,209
$104,494
Year 1 Payback
178.0:1
22.0:1
16.3:1
15.3:1
35.0:1
Initial 5 Years Tax Savings
$827,213
$779,557
$53,726
$151,439
$210,708
5 Year Payback
314.0:1
324.0:1
77.0:1
68.7:1
71.5:1
* Results from “Catch Up” studies which allow the owner of properties purchased in previous tax years
to benefit from cost segregation in the current tax year without filing amended returns.
** Mid-Quarter depreciation convention utilized due to purchase date.
***Results include bonus depreciation first year calculations.
NOTE: The above listed tax savings are based on a 39.6% tax rate for the owner.