Year 1 Increased Depreciation:
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:
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.
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