Cost Segregation San Diego, CA
Cost Segregation Studies
Cost Segregation is a viable cash flow enhancing tool regardless of location, but can be particularly valuable in the San Diego area.
Thanks to its natural deep-water port, the San Diego area’s economy is led by the military and defense industry, with tourism, international trade and research and manufacturing following closely behind. San Diego has the largest naval fleet in the world, and is the home to several major national defense contractors. The agreeable climate, pristine beaches, and world famous zoo attract tourists by the millions each year. San Diego is authorized by the U.S. government to operate as a Foreign Trade Zone, which coupled with its a5 mile shared border with Mexico, make international trade a key factor in its economy. The biotech and wireless cellular tech companies are major employers.
Commercial real estate prices are high, as are housing costs (those these have moderated a bit over the past few years). 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!
Sample of Actual Study Results
Asset Type
Retail
Auto Dealer
Multifamily
Warehouse
Multifamily
Depreciable Basis
$1,088,049
$5,306,601
$6,440,000
$4,427,651
$2,520,000
Purchase Date
SEP 2015
06/01/15
09/01/15
07/01/15
07/01/15
Year of Study
2015
2015
2015
2015
2015
1st Year Additional Depreciation
$316,620
$127,482
$172,075
$179,180
$86,845
1st Year Tax Savings
$125,381
$50,483
$68,142
$69,163
$34,391
Year 1 Payback
104.0:1
16.1:1
19.8:1
21.7:1
10.8:1
Initial 5 Years Tax Savings
$176,161
$248,245
$381,631
$307,017
$153,649
5 Year Payback
147.0:
80.0:1
112.0:1
97.2:1
49.3:1
** Includes Bonus Depreciation
NOTE: The above listed tax savings are based on a 39.6% tax rate for the owner.