Apartments
Cost Segregation Studies
Multifamily assets lend themselves wonderfully well to cost segregation. Short life items are found in abundance, especially in the interior of the rental units themselves.
Additional opportunities abound in all common area elements as well as often overlooked possibilities found on campus in ground preparation work, parking lots and drainage facilities.
Our apartments cost segregation studies also break out the IRS mandated Units of Property when considering the long-term components present in your building.
It is common for our apartment studies to pay back the cost of the study by more than 15 to 1 in the first year of study use. Note the actual results highlighted in the table below. You will see first year savings ranging from a modest $30,000 up to an astounding $400,000 plus!
Sample of Actual Study Results
Depreciable Basis
$15,846,480
$40,268,397
$24,300,000
$7,200,000
$45,124,230
$3,682,593
$33,605,162
$1,760,000
$135,410,255
$47,889,294
Purchase price
$2,140,000
$19,514,000
$24,300,000
$9,180,000
$10,661,100
$4,727,500
$30,714,978
$436,856
$894,900
$23,438,580
Purchase Date
Mar-22
May-22
Feb-22
Jun-22
Sep-22
Nov-21
Mar-22
Sep-22
Nov-23
Dec-23
Year of Study
2022
2022
2022
2022
2022
2022
2022
2022
2022
2022
1st Year Tax Savings
$177,977
$193,201
$241,326
$89,289
$104,182
$44,521
$305,831
$3,100
$6,350
$232,664
Year 1 Payback
42:01:00
46:01:00
50:01:00
27:01:00
29:01:00
15:01
63:01:00
1:01
2:01
48:01:00
Initial 5 Years Tax Savings
$906,587
$983,096
$1,224,950
$460,879
$535,725
$235,882
$1,549,124
$20,783
$42,574
$1,181,420
5 Year Payback
214:01:00
233:01:00
254:01:00
139:01:00
148:01:00
78:01:00
321:01:00
7:01
14:01
244:01:00
* 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.
NOTE: The above listed tax savings are based on a 39.6% tax rate for the owner.