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
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
A CRS COST SEGREGATION STUDY:
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.