Cost Segregation for Austin and Travis County
Austin and Travis County are one of the hottest property markets in America. With the value of homes, commercial property, and even raw land going through the roof, business owners in Austin need all the help they can get. Cost segregation allows you to use accelerated depreciation of commercial property to reduce your income taxes. With the cost of living going up in Austin and the surrounding area, the bounty of savings from cost segregation is only amplified.
Austin is a hub of entertainment, tech, and culture, and is a heady mix of West Coast ideals and Texas values. With the massive University of Texas, state government, and an ever-increasing influx of tech giants, Austin has one of the most diverse economies in the United States. This has made Austin, Travis County, and Hays County some of the ripest environments for real estate investment.
The team at O’Connor have been navigating the world of Texas property taxes for 50 years and have many expert appraisers that know how best to catalog a Texas property. Using the stringent guidelines set forward by the IRS, O’Connor can give you a cost segregation report that has credible methods, accurate results, and expert documentation, the three pillars you need to successfully lower your income taxes. The following table shows just a few clients that O’Connor has been able to help in their cost segregation journey.
Successful Cost Segregation Studies in Austin, TX
Asset Type | Depreciable Basis | Purchase Date | Year of Study | 1st Year Additional Depreciation | 1st Year Tax Savings | Year 1 Payback | Initial 5 Years Tax Savings | 5 Year Payback |
---|---|---|---|---|---|---|---|---|
Multifamily | $10,658,972 | 03/01/16 | 2016 | $1,963,835 | $777,678 | 260.0:1 | $3,468,169 | 1,161:1 |
Retail Strip Center | $5,083,854 | 08/01/14 | 2014 | $314,231 | $124,435 | 44.0:1 | $560,935 | 199.0:1 |
Warehouse | $1,444,320 | 09/01/15 | 2015 | $56,683 | $22,447 | 8.3:1 | $100,215 | 37.9:1 |
Office | $2,651,133 | 04/01/16 | 2016 | $47,801 | $18,929 | 6.3:1 | $91,295 | 31.2:1 |
Multifamily | $58,332,430 | 05/01/15 | 2015 | $2,558,412 | $1,013,131 | 344.0:1 | $4,188,996 | 1,424:1 |
NOTE: The above listed tax savings are based on a 39.6% tax rate for the owner.