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CASE STUDY UPDATE!
Below are three case studies demonstrating the real life examples of cash flow improvement that have been achieved by our clients for a lodge, apartment complex and office building.
Savings can still be realized for 2009 tax returns that are on extension but time is running out so don't delay. 2010 projects should be completed now to reduce or eliminate estimated tax payments.
Call or submit a proposal request today for a complimentary feasibility analysis showing your tax savings for properties constructed or acquired in 2010 or before. You will not be disappointed!
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Lodge
NPV Tax Savings: $620,400
 This lodge located in Colorado was constructed in July 2009 for $9,600,000. The engineering-based cost segregation study reclassified approximately 26% of the construction costs into shorter recovery periods. This property also qualified for 50% Bonus Depreciation.
5/7-Year Personal Property: $1,290,000
15-Year Land Improvements: $1,190,000
This resulted in:
 Additional first year depreciation of $1,380,000
First year tax savings of $560,000
Net Present Value (NPV) tax savings of $620,400
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Apartment Complex
NPV Tax Savings: $1,280,000
 This apartment complex located in Pennsylvania was constructed in January 2010 for $21,700,000 (excluding land). The engineering-based cost segregation study reclassified approximately 41% of the construction costs into shorter recovery periods.
5/7-Year Personal Property: $2,690,000
15-Year Land Improvements: $6,190,000
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Office Building
NPV Tax Savings: $316,000
 This office building located in Texas was acquired in April 2006 for $6,150,000 (excluding land). The engineering-based cost segregation study reclassified approximately 25% of the building basis into shorter recovery periods.
5/7-Year Personal Property: $452,000
15-Year Land Improvements: $1,065,000
This resulted in:
Additional first year depreciation of $557,000
First year tax savings of $227,000
Net Present Value (NPV) tax savings of $316,000
This property received a large first year tax savings from a catch-up adjustment due to the retroactive nature of the study. The automatic change in method of accounting required filing Form 3115 but did not require amended returns or prior IRS approval. We also prepared the Form 3115 for this project.
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Cost Recovery Solutions, LLC
www.crscostseg.com
407 Main Street
Metuchen, NJ 08840
P: (732) 548-3855
F: (732) 549-8844
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