CBRE’s cost segregation professionals perform a non-intrusive yet detailed engineering study of a building’s walls, floors, ceilings, plumbing, electrical, lighting, telecommunications, heating and cooling systems in order to identify specific components that qualify to be depreciated over 5, 7 and 15 years rather than 27.5 for multi-family buildings or 39 years for commercial buildings. Our cost segregation studies are based on well-founded interpretations of the Internal Revenue Code Sections, applicable court cases, and revenue rulings.
Although every situation is different, the following chart provides examples of the typical benefits one can expect Cost Segregation to create based on the type of building.
|
PRESENT VALUE OF TAX BENEFITS
PER $1,000,000 BUILDING COST |
FACILITY |
YEAR 1 |
YEARS 1-6 |
TOTAL TAX LIFE |
Auto Dealership |
$ 10,000 |
$ 45,000 |
$ 40,000 |
Restaurant |
$ 19,000 |
$ 74,000 |
$ 66,000 |
Regional Shopping Center |
$ 11,000 |
$ 49,000 |
$ 45,000 |
Office Building |
$ 7,000 |
$ 33,000 |
$ 31,000 |
Multi-Family |
$ 15,000 |
$ 59,500 |
$ 47,000 |
Strip Mall |
$ 11,000 |
$ 48,000 |
$ 43,000 |
Medical Office Building |
$ 14,000 |
$ 50,000 |
$ 42,000 |
Senior Living Facility |
$ 14,000 |
$ 60,000 |
$ 50,000 |
Hotel |
$ 11,000 |
$ 48,000 |
$ 43,000 |
Light Manufacturing |
$ 13,000 |
$ 56,000 |
$ 47,000 |
Heavy Manufacturing |
$ 21,000 |
$ 87,000 |
$ 71,000 |
High-Tech |
$ 53,000 |
$ 210,000 |
$ 180,000 |
Highly-Themed Mall |
$ 17,000 |
$ 72,000 |
$ 64,000 |
Case Studies:
For more information, contact our professionals: