Los Angeles, CA Cost Segregation
Los Angeles may be known for glitz, glamour, and traffic, but this belies the fact that LA is one of the biggest business hubs in the world. Outside of Hollywood, there is the Port of Long Beach, offices galore, international trade, and the largest manufacturing sector on the West Coast. Not to mention all the apartments, rental homes, and stores that must service the second-largest population in the United States.
Manufacturing, housing, and even entertainment can be used for cost segregation, any commercial property will do. With a city as big and wealthy as Los Angeles, short-life and long-term depreciation practically grows on trees. All of this, without regard for the industry, can be used by cost segregation to lower income taxes. A commercial property owner must meet a strict set of guidelines handed down by the IRS for this to happen, which ensures that all cost segregation reports use credible methods, accurate results, and correct documentation.
O’Connor is here to help the people of Los Angeles and the rest of Southern California with their cost segregation needs. For over 20 years, O’Connor has been doing cost segregation reports, performing over 10,000 of them. And not a single one has been rejected by the IRS. With a cost segregation report in hand, you can get an ROI of 5-1, or depending on industry and other factors, a 75-1reduction on your income taxes. The following table shows a few Los Angeles property owners that benefited from a partnership with O’Connor.
Los Angeles Real Cost Segregation Results
| 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 | $2,573,452 | 06/01/15 | 2015 | $136,270 | $53,963 | 31.9:1 | $224,026 | 133.0:1 |
| Multifamily | $2,841,275 | 02/01/16 | 2016 | $129,121 | $51,132 | 30.2:1 | $226,166 | 135.0:1 |
| Office | $10,500,000 | 12/01/15 | 2015 | $321,472 | $127,303 | 50.2:1 | $508,708 | 202.0:1 |
| Warehouse | $3,780,000 | 03/01/15 | 2015 | $76,611 | $30,336 | 31.4:1 | $148,293 | 154.0:1 |
| Retail Center | $19,076,394 | 04/01/15 | 2015 | $846,511 | $335,219 | 107.0:1 | $1,534,666 | 490.0:1 |
Results
* * Mid-Quarter depreciation convention utilized due to purchase date.
NOTE: The above listed tax savings are based on a 39.6% tax rate for the owner.