Cost Segregation Studies for Atlanta, GA
Cost segregation is the only IRS-endorsed way to reduce income taxes with accelerated depreciation. The Atlanta area is tailor-made for this endeavor, as it boasts a litany of property types that are ripe for exploration. Thanks to lower property costs, many commercial ventures in Atlanta and the surrounding counties are larger than usual, opening up plenty of opportunities to find short-life and long-term depreciation.
Based in Fulton County, Atlanta’s reach also influences the counties of DeKalb, Gwinnett, and Cobb, and each plays host to many businesses, including 1,250 multinational corporations. Atlanta is also a transportation hub thanks to being a railroad terminus and having the busiest airport in the world. Whether it is a small business or one of Atlanta’s many Fortune 500 companies, all can benefit from a cost segregation study.
O’Connor has an office in the Atlanta area, and Georgia is one of our top markets for both property tax protests and cost segregation. We are already experts in the complex property laws of Georgia and can make the perfect partners in your quest to lower your income taxes. The following table shows some Atlanta commercial property holders that have been helped by O’Connor in the past.
Sample of Actual Study 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 |
|---|---|---|---|---|---|---|---|---|
| Warehouse | $4,276,125 | 12/01/15 | 2011 | $432,502 | $171,271 | 56.7:1 | $228,899 | 75.8:1 |
| Multifamily | $27,150,000 | 05/01/16 | 2016 | $747,739 | $296,105 | 101.0:1 | $1,274,128 | 434.0:1 |
| Medical Office | $881,119 | 08/01/15 | 2015 | $166,296 | $65,853 | 36.7:1 | $72,471 | 41.3:1 |
| Multifamily | $40,125,000 | 09/01/15 | 2015 | $2,170,744 | $859,615 | 288.0:1 | $3,398,982 | 1138.0:1 |
| Medical Office | $623,971 | 02/01/14 | 2014 | $12,069 | $4,779 | 2.8:1 | $30,027 | 18.9:1 |
Results
* Results from “Catch Up” studies which allow the owner of properties purchased in previous tax years to benefit from cost segregation in the current tax year without filing amended returns.
** Mid-Quarter depreciation convention utilized due to purchase date.
***Results include bonus depreciation first year calculations.
NOTE: The above listed tax savings are based on a 39.6% tax rate for the owner.
