All Forum Posts by: Sarah Waterman

• Ask and you shall receive! Here are a few client cases:
• Apartment Complex Garden Style, 102 units in OH, purchased in 2005
• Purchase price $26m (of which $2,093,729 is the depreciable basis)
• Owner’s 2020 depreciation expense without cost seg - $76,135
• Owner’s 2020 depreciation expense with Owner’s 2020 depreciation expense with cost segregation - $715,650
• Catch-up depreciation deduction of $715,650 in 2020, even 15 years after purchase.

• Apartment Complex, 16 Units in GA
• Originally 1986, Purchased in 2020
• Purchase price $7600,000 of which $655,710 (is the depreciable basis)
• Owner’s 2019 depreciation expense without cost seg - $23,844
• Owner’s 2019 depreciation expense with cost segregation - $245,575

• Busy Bees Automotive – Las Vegas, NV
• Purchased 10/20201, appx 18,000 sf
• PP $3,500,000 (of which $2,800,000 is total depreciable basis)
• Owner's 2021 depreciation expense without cost segregation - $35,897
• Owner's 2021 depreciation expense with cost segregation - $1,086,114
• (accelerated amount was 38.47%)

• Large Multifamily Apartment, Boise, ID
• Purchased 11/2020
• PP $14,393,083 (of which $12,245,031 is the depreciable basis)
• Owner’s 2020 depreciation expense without cost seg - $261,692
• Owner’s 2020 depreciation expense cost with cost segregation - $3,918,400.
• (accelerated amount was 32%)

Questions? Feel free to dm me.

Quote from @John McKee:

Give us an example of a cost segregation you have done and how much money did it save you.

Here are a few case studies we have completed.
I would not recommend going with a firm that does things remotely. The IRS prefers in-person site visits and I like to be on the safe side with the IRS! This is not the place to cheap out.
Public Storage Unit Purchased by Investor in UT, 2020
Purchase Price $5 million, of which $3.875 million (is the depreciable basis)
Owner’s 2019 depreciation expense without cost seg - $70,379
Owner’s 2019 depreciation expense with cost segregation - $1.6 M

Apartment Complex Garden Style, 102 units in OH, purchased in 2005
Purchase price $26m (of which $2,093,729 is the depreciable basis)
Owner’s 2020 depreciation expense without cost seg - $76,135
Owner’s 2020 depreciation expense with Owner’s 2020 depreciation expense with cost segregation - $715,650

Catch-up depreciation deduction of $715,650 in 2020, even 15 years after
purchase.

Small Apartment Complex 6 Units, TX
Originally built in 1957, purchased by investor March 2018
Purchase price $1,885,800, )of which $1,131,480 is the depreciable basis)
Owner’s 2019 depreciation expense without cost seg - $32,573
Owner’s 2019 depreciation expense with cost segregation - $502,313

Here to help!

Ronald

To address your point yes it is shifting tax obligations,

However there's a very good reason for it and that is the "time value of money."

A cash flow today is more valuable than an identical cash flow in the future because a present flow can be invested immediately and begin earning returns, while a future flow cannot.

I was one of my very satisfied client said, 

Quote from @Sarah Waterman:

Quote from @Ronald Rohde:

You have to understand cost seg is just shifting tax obligations. Most proponents love to tout the "savings" but its just shifting it forward, your reduced basis means a bigger tax bill down the line. It depends on your hold period and exit plans. If you're open to 1031 again, it would probably be good for you. Check with @Yonah Weiss

Quote from @Ronald Rohde:

You have to understand cost seg is just shifting tax obligations. Most proponents love to tout the "savings" but its just shifting it forward, your reduced basis means a bigger tax bill down the line. It depends on your hold period and exit plans. If you're open to 1031 again, it would probably be good for you. Check with @Yonah Weiss

Exactly go get a cost benefit analysis and see what your numbers are easy Peezy my friend

Blah blah blah...

bottom line get a cost seg benefit analysis it will cost you nothing and you'll have real numbers

happy to help-pm me 

Definitely consult a cost segregation expert.  

It will cost you nothing.  

Feel free to email me at sarah @ costsegregationbenefits .com 

Happy Holidays and way to go!!

lol It is super simple for the client - they just call their CPA😂

And of course nothing is black or white one or zero generally speaking it's a good thing to do and yes there are exceptions...

The best advice is always check it out!!