Asset Valuation + Cost Segregation

Typical Cost Segregation Results

Average Basis Reallocations

Apartment Buildings

CLASS

5-YR

7-YR

15-YR

27.5-Yr

 

%

14

0

7

79

On a $2.5 Million apartment building study, excluding land value,

  • $350,000 would be reclassified into 5-Year Property
  • $175,000 would be reclassified into 15-Year Property

At a 40% corporate tax rate & 8% discount rate:

  • This represents a net present value of after-tax savings in the first five years of $119,285, with $28,808 in the first year.

 

 


Assisted Living Facility

CLASS

5-YR

7-YR

15-YR

39-YR

%

12

0

10

78

On a $5.0 Million assisted living facility study, excluding land value,

  • $600,000 would be reclassified into 5-Year Property
  • $500,000 would be reclassified into 15-Year Property

At a 40% corporate tax rate & 8% discount rate:

  • This represents a net present value of after-tax savings in the first five years of $222,530, with $52,359 in the first year.

Auto Dealership

CLASS

5-YR

7-YR

15-YR

39-YR

%

9

0

16

75

On a $6.0 Million auto dealership study, excluding land value,

  • $540,000 would be reclassified into 5-Year Property
  • $960,000 would be reclassified into 15-Year Property

At a 40% corporate tax rate & 8% discount rate:

  • This represents a net present value of after-tax savings in the first five years of $246,281, with $54,708 in the first year.

Bank Branch

CLASS

5-YR

7-YR

15-YR

39-YR

%

20

0

12

68

On a $2.0 Million bank branch study, excluding land value,

  • $400,000 would be reclassified into 5-Year Property
  • $240,000 would be reclassified into 15-Year Property

At a 40% corporate tax rate & 8% discount rate:

  • This represents a net present value of after-tax savings in the first five years of $139,935, with $33,518 in the first year.

Car & Truck Body Shop

CLASS

5-YR

7-YR

15-YR

39-YR

%

11

0

13

76

On a $2.0 Million auto body shop study, excluding land value,

  • $220,000 would be reclassified into 5-Year Property
  • $260,000 would be reclassified into 15-Year Property

At a 40% corporate tax rate & 8% discount rate:

  • This represents a net present value of after-tax savings in the first five years of $88,510, with $20,338 in the first year.

Casino

CLASS

5-YR

7-YR

15-YR

39-YR

%

5

23

15

57

On a $10.0 Million casino study, excluding land value,

  • $500,000 would be reclassified into 5-Year Property
  • $2,300,000 would be reclassified into 7-Year Property
  • $1,500,000 would be reclassified into 15-Year Property

At a 40% corporate tax rate & 8% discount rate:

  • This represents a net present value of after-tax savings in the first five years of $822,871, with $179,380 in the first year.

Distribution Center

CLASS

5-YR

7-YR

15-YR

39-YR

%

9

0

15

76

On a $3.0 Million distribution center study, excluding land value,

  • $270,000 would be reclassified into 5-Year Property
  • $450,000 would be reclassified into 15-Year Property

At a 40% corporate tax rate & 8% discount rate:

  • This represents a net present value of after-tax savings in the first five years of $120,434 with $26,908 in the first year.

Food Processing Facility

CLASS

5-YR

7-YR

15-YR

39-YR

%

1

25

10

64

On a $20.0 Million food processing facility study, excluding land value,

  • $200,000 would be reclassified into 5-Year Property
  • $5,000,000 would be reclassified into 7-Year Property
  • $2,000,000 would be reclassified into 15-Year Property

At a 40% corporate tax rate & 8% discount rate:

  • This represents a net present value of after-tax savings in the first five years of $1,412,828 with $304,797 in the first year.

Golf Course / Country Club

CLASS

5-YR

7-YR

15-YR

39-YR

%

1

6

55

38

On a $15.0 Million golf course or country club study, excluding land value,

  • $150,000 would be reclassified into 5-Year Property
  • $900,000 would be reclassified into 7-Year Property
  • $8,250,000 would be reclassified into 15-Year Property

At a 40% corporate tax rate & 8% discount rate:

  • This represents a net present value of after-tax savings over 39 years of $1,237,997 with $180,737 in the first year.

Hospital / Medical Center

CLASS

5-YR

7-YR

15-YR

39-YR

%

25

0

12

63

On a $35.0 Million hospital or medical center study, excluding land value,

  • $8,750,000 would be reclassified into 5-Year Property
  • $4,200,000 would be reclassified into 15-Year Property

At a 40% corporate tax rate & 8% discount rate:

  • This represents a net present value of after-tax savings in the first five years of $2,966,353 with $717,590 in the first year.

Hotel

CLASS

5-YR

7-YR

15-YR

39-YR

%

16

0

13

71

On a $15.0 Million hotel study, excluding land value,

  • $2,400,000 would be reclassified into 5-Year Property
  • $1,950,000 would be reclassified into 15-Year Property

At a 40% corporate tax rate & 8% discount rate:

  • This represents a net present value of after-tax savings in the first five years of $885,612 with $208,692 in the first year.

Industrial & Flex Buildings

CLASS

5-YR

7-YR

15-YR

39-YR

%

3

3

12

82

On a $5.0 Million industrial / flex building study, excluding land value,

  • $150,000 would be reclassified into 5-Year Property
  • $150,000 would be reclassified into 7-Year Property
  • $600,000 would be reclassified into 15-Year Property

At a 40% corporate tax rate & 8% discount rate:

  • This represents a net present value of after-tax savings in the first five years of $133,679 with $27,956 in the first year.

Heavy Manufacturing

CLASS

5-YR

7-YR

15-YR

39-YR

%

1

30

15

54

On a $8.0 Million heavy manufacturing study, excluding land value,

  • $80,000 would be reclassified into 5-Year Property
  • $2,400,000 would be reclassified into 7-Year Property
  • $1,200,000 would be reclassified into 15-Year Property

At a 40% corporate tax rate & 8% discount rate:

  • This represents a net present value of after-tax savings in the first five years of $695,075 with $148,674 in the first year.

Light Manufacturing

CLASS

5-YR

7-YR

15-YR

39-YR

%

1

10

10

79

On a $3.5 Million light manufacturing study, excluding land value,

  • $35,000 would be reclassified into 5-Year Property
  • $1,050,000 would be reclassified into 7-Year Property
  • $525,000 would be reclassified into 15-Year Property

At a 40% corporate tax rate & 8% discount rate:

  • This represents a net present value of after-tax savings in the first five years of $304,095 with $65,045 in the first year.

Nursing Home

CLASS

5-YR

7-YR

15-YR

39-YR

%

17

0

10

73

On a $7.0 Million nursing home study, excluding land value,

  • $1,190,000 would be reclassified into 5-Year Property
  • $700,000 would be reclassified into 15-Year Property

At a 40% corporate tax rate & 8% discount rate:

  • This represents a net present value of after-tax savings in the first five years of $415,042 with $99,508 in the first year.

Office

CLASS

5-YR

7-YR

15-YR

39-YR

%

6

2

9

83

On a $5.0 Million office study, excluding land value,

  • $300,000 would be reclassified into 5-Year Property
  • $100,000 would be reclassified into 7-Year Property
  • $450,000 would be reclassified into 15-Year Property

At a 40% corporate tax rate & 8% discount rate:

  • This represents a net present value of after-tax savings in the first five years of $152,772 with $34,356 in the first year.

Office - Medical

CLASS

5-YR

7-YR

15-YR

39-YR

%

19

0

9

72

On a $12.0 Million medical office study, excluding land value,

  • $2,280,000 would be reclassified into 5-Year Property
  • $1,080,000 would be reclassified into 15-Year Property

At a 40% corporate tax rate & 8% discount rate:

  • This represents a net present value of after-tax savings in the first five years of $771,648 with $186,769 in the first year.

Restaurant

CLASS

5-YR

7-YR

15-YR

39-YR

%

21

0

8

71

On a $2.0 Million restaurant study, excluding land value,

  • $380,000 would be reclassified into 5-Year Property
  • $180,000 would be reclassified into 15-Year Property

At a 40% corporate tax rate & 8% discount rate:

  • This represents a net present value of after-tax savings in the first five years of $128,608 with $31,128 in the first year.

Restaurant - Upscale

CLASS

5-YR

7-YR

15-YR

39-YR

%

26

0

8

66

On a $3.5 Million upscale restaurant study, excluding land value,

  • $910,000 would be reclassified into 5-Year Property
  • $280,000 would be reclassified into 15-Year Property

At a 40% corporate tax rate & 8% discount rate:

  • This represents a net present value of after-tax savings in the first five years of $294,357 with $72,298 in the first year.

Retail

CLASS

5-YR

7-YR

15-YR

39-YR

%

8

0

10

82

On a $1.0 Million retail study, excluding land value,

  • $260,000 would be reclassified into 5-Year Property
  • $80,000 would be reclassified into 15-Year Property

At a 40% corporate tax rate & 8% discount rate:

  • This represents a net present value of after-tax savings in the first five years of $84,102 with $20,102 in the first year.

Retail - Shopping Center

CLASS

5-YR

7-YR

15-YR

39-YR

%

9

0

14

77

On a $8.5 Million retail shopping center study, excluding land value,

  • $765,000 would be reclassified into 5-Year Property
  • $1,190,000 would be reclassified into 15-Year Property

At a 40% corporate tax rate & 8% discount rate:

  • This represents a net present value of after-tax savings in the first five years of $333,565 with $74,974 in the first year.

Self Storage Facility

CLASS

5-YR

7-YR

15-YR

39-YR

%

7

0

15

78

On a $2.0 Million self storage facility study, excluding land value,

  • $140,000 would be reclassified into 5-Year Property
  • $300,000 would be reclassified into 15-Year Property

At a 40% corporate tax rate & 8% discount rate:

  • This represents a net present value of after-tax savings in the first five years of $68,461 with $14,944 in the first year.

Movie Theater \ Cinema

CLASS

5-YR

7-YR

15-YR

39-YR

%

5

18

10

67

On a $6.0 Million movie theater\ cinema study, excluding land value,

  • $300,000 would be reclassified into 5-Year Property
  • $1,080,000 would be reclassified into 7-Year Property
  • $600,000 would be reclassified into 15-Year Property

At a 40% corporate tax rate & 8% discount rate:

  • This represents a net present value of after-tax savings in the first five years of $396,264 with $87,562 in the first year.

Warehouse

CLASS

5-YR

7-YR

15-YR

39-YR

%

3

0

15

82

On a $1.5 Million warehouse study, excluding land value,

  • $45,000 would be reclassified into 5-Year Property
  • $225,000 would be reclassified into 15-Year Property

At a 40% corporate tax rate & 8% discount rate:

  • This represents a net present value of after-tax savings over 39 years of $37,904 with $6,715 in the first year.