Case Studies
Apartments
Lansing, Illinois
- 108 unit; 125,000 square feet
- Cost Reclassified 35.72%
- Year 1 Increased Depreciation $668,883
Cost Segregation Authority was engaged to rush a study on this class B apartment property located in Lansing, Illinois in order to capitalize on benefits of accelerated depreciation prior to its sale less than 3 weeks later.
The property is a 108-unit residential apartment complex featuring 1 and 2 bedroom units sitting on 4.68 acres. We were able to reclassify the following percentages of each asset class:
- 5 – Year: 27.24%
- 7 – Year: Less Than 1%
- 15 – Year: 8.97%
- Total Reclassified: 36.72%
Since it was purchased in 2011, the owners were able to submit a 481(a) catchup depreciation amount of $531,158 plus an additional $156,778 for their current year tax return prior to the sale. Even with recapture tax a year later, the savings was substantial.
Lansing, Illinois
- 108 unit; 125,000 square feet
- Cost Reclassified 35.72%
- Year 1 Increased Depreciation $668,883
Cost Segregation Authority was engaged to rush a study on this class B apartment property located in Lansing, Illinois in order to capitalize on benefits of accelerated depreciation prior to its sale less than 3 weeks later.
The property is a 108-unit residential apartment complex featuring 1 and 2 bedroom units sitting on 4.68 acres. We were able to reclassify the following percentages of each asset class:
- 5 – Year: 27.24%
- 7 – Year: Less Than 1%
- 15 – Year: 8.97%
- Total Reclassified: 36.72%
Since it was purchased in 2011, the owners were able to submit a 481(a) catchup depreciation amount of $531,158 plus an additional $156,778 for their current year tax return prior to the sale. Even with recapture tax a year later, the savings was substantial.
