Cost Segregation Los Angeles, CA
Cost Segregation Studies
Cost Segregation is a viable cash flow enhancing tool regardless of location, but is particularly valuable in the greater Los Angeles area with its dynamic economy.
The economy of Los Angeles is known for international trade and the entertainment industries. It is also known for being the largest manufacturing center in the western United States. The port of Los Angeles is the fifth busiest port in the world making businesses involved in import export thrive here.
The possibility of higher rental rates leading to increased profits makes potential savings on federal taxes through depreciation identified by cost segregation even more appealing. Additional cash flow from the resulting savings will tend to offset the comparatively higher cost of materials and labor in the California market.
O’Connor Cost Segregation agents can be found working in the California market with regularity. California ranks first in number of studies performed by our firm over the past three years! We know the market; we know the variables; we know how to deliver quality reports that save you money!
Note the actual results highlighted in the table below.
Sample of Actual Study Results
Asset Type
Multifamily
Multifamily
Office
Warehouse
Retail Center
Depreciable Basis
$2,573,452
$2,841,275
$10,500,000
$3,780,000
$19,076,394
Purchase Date
06/01/15
02/01/16
12/01/15
03/01/15
04/01/15
Year of Study
2015
2016
2015
2015
2015
1st Year Additional Depreciation
$136,270
$129,121
$321,472
$76,611
$846,511
1st Year Tax Savings
$53,963
$51,132
$127,303
$30,336
$335,219
Year 1 Payback
31.9:1
30.2:1
50.2:1
31.4:1
107.0:1
Initial 5 Years Tax Savings
$224,026
$226,166
$508,708
$148,293
$1,534,666
5 Year Payback
133.0:1
135.0:1
202.0:1
154.0:1
490.0:1
* * Mid-Quarter depreciation convention utilized due to purchase date.
NOTE: The above listed tax savings are based on a 39.6% tax rate for the owner.