CRS Cost Segregation Case Study: Apartment Complex

See how CRS saved an apartment owner over $1,000,000 on their taxes.

Cash flow is one of the most important parts of owning and operating a successful rental business. How can you augment your current cash flow? Depreciation maximization by way of an expert cost segregation study can help you increase your cash flow and lower your taxes. Cost Recovery Solutions can work with you and your accountant to identify the assets in your building that are eligible for accelerated depreciation.

A sample of property in your apartment complex that can be depreciated at a quicker rate:

  • Carpeting & laminate flooring
  • Kitchen hoods & exhaust systems
  • Wiring & plumbing for kitchen appliances
  • Underground storm drainage
  • Retaining walls

Recent CRS Apartment Complex Project

Net Present Value (NPV) Tax Savings: $1,170,000

This apartment complex located in Pennsylvania was constructed in July 2014 for $21,700,000 (excluding land). The engineering-based cost segregation study reclassified approximately 27% of the construction costs into shorter recovery periods.


  • 5/7 – Year Personal Property: $2,690,000 (12.4%)
  • 15 – Year Land Improvements: $3,210,000 (14.8%)


  • Additional depreciation of $3,870,000 over first five years
  • Tax savings of $1,430,000 over the first five years

NPV tax savings of $1,170,000


Depreciation Maximization = Lower Taxes = Increased Income

Cost Recovery Solutions LLC

A cost segregation analysis provider offering accountants, commercial real estate owners, and developers/construction professionals nationwide cost segregation services. Contact us for a proposal.

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