Case Studies

Warehouse

Property Type: Warehouse

Purchase Price (less land): $850,000

First-year tax savings benefit: $62,000

This client had recently acquired the distribution rights to a popular brand and with huge first-year sales, was looking for a way to offset an unexpected tax bill. Having just completed various improvements to the property, including fencing, site work, and pavement, we were able to increase his depreciation expense by $150,000 more than the standard straight-line depreciation method would have provided him. In the end, he walked away with tax savings of over $60,000. Because of this positive experience, he continues to refer friends and business partners to us.

Duplex

Property Type: Duplex

Purchase price (less land): $830,000

First-year tax savings benefit: $77,000

This first time real estate investor had heard that a cost segregation study could help offset a high tax burden. With an already high income from her day job, she turned to us for a no-cost, predictive analysis of how much depreciation we could accelerate on this newly acquired multi-family rental. She was pleased to see an increased depreciation expense of over $200,000, leading to a tax saving of over $77,000. She was so happy with the results that she immediately referred other investors and friends to us.

Factory & Warehouse Facility

Property Type: Assembly facility and warehouse

Purchase price (less land): $1,504,100

First-year tax-savings benefit: $145,000

This building owner hired a new CPA who sent him our way to offset a large tax bill. Initially, he was skeptical that the study would be helpful because the buildings were simple steel structures without much tangible property inside. What he was surprised to learn was that the site work, with a 15-year class life, could be accelerated to generate nearly $300,000 in depreciation expenses. With the ability to carry tax savings into future tax years, owners like him will be free to reinvest that money back into the business and keep on growing.

Storefront

Property Type: Storefront

Purchase Price (less land): $1,250,000

First-year tax savings benefit: $147,000

This building owner had been a longtime tenant, so when the opportunity arose to purchase the property and become the owner, he took it. Faced with a large tax bill, he reached out to us for help because he had heard that cost segregation could save him money. After a promising predictive analysis, he was convinced that working with CSSI was the right move. A few months later, we were excited to present him with a completed, engineering-based cost segregation study that delivered even more tax savings than anticipated.

Single-Family Long-Term Rental

Property Type: Single-family long-term rental

Purchase price (less land): $440,000

First-year tax savings benefit: $32,000

This new residential real estate investor was finding early success and needed a way to increase cash flow to reinvest back into her rental properties. She turned to CSSI to help her when competitors didn't think her business was big enough for them. Rather than having to sell off properties or go into debt, she used the increased depreciation expense to pay less in taxes and cash flow the improvements. The result? She has nicer properties and can charge a premium in a competitive rental market.