Office Building
Offices have consistently been successful where cost segregation is concerned. Much is dependent on what the occupying company does and how they use the building assets. Data systems and finish materials can provide to be tremendous tax saving depreciable assets.
Often times a lessee/tenant will make substantial capital contributions towards the finishing of their space. Most of these costs can be depreciated over a shorter life through a formal cost segregation analysis, yielding a tax saving cash benefit to the tenant.
A breakdown by percentage for an office building with a capitalized cost basis of $2,000,000 after a segregation analysis is completed may look like the following:
| Capital Costs by Class Life after Cost Segregation | 2 Yr Cash Benefit $60,623 | |||
| 5 Years | 7 Years | 15 Years | Total | |
| 12.6 % | 1.0 % | 10.4 % | 24.0% | NPV Tax Savings $85,437 |
| $252,000 | $20,000 | $208,000 | $480,000 | |
