Chicago and Cook County Cost Segregation
Chicago, Cook County, and Illinois as a whole all have some of the highest property taxes in the United States. But even with this in mind, Chicago and the surrounding area are still one of the most in-demand markets for property in America. With a huge population and a massive size to go with it, Cook County is a true economic powerhouse. Chicago also has an incredibly diverse economy, which includes education, financial services, banking, and dozens of Fortune 500 companies.
One of the best ways for real estate investors and business owners to mitigate high taxes is to use cost segregation. This enables property owners to use accelerated depreciation of commercial holdings to reduce or even eliminate income taxes. With oppressive levies on properties in Chicago and Cook County, saving on income taxes can help create a new cash flow stream that would otherwise not be possible.
O’Connor has an office located in the suburbs of Chicago, and we know the complex system of property regulations across the area. With experts in law, accounting, appraisal, and more, the O’Connor team knows the value of a piece of property in Cook County and where to find the most depreciation possible. The income tax savings in the first year can easily eclipse the cost of a study, often by a factor of 5-1 or more. The following table lists just a few customers that were able to save when they used O’Connor for cost segregation.
Results for Chicago Cost Segregation
| 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 | $29,188,472 | 05/01/15 | 2015 | $1,191,243 | $471,732 | 156.0:1 | $2,022,703 | 671.0:1 |
| Auto Dealership | $2,226,210 | 06/01/15 | 2015 | $50,445 | $19,976 | 5.7:1 | $100,674 | 29.7:1 |
| Retail | $4,830,000 | 06/01/15 | 2015 | $134,610 | $53,306 | 19.7:1 | $264,864 | 98.8:1 |
| Warehouse | $47,629,660 | 06/01/15 | 2015 | $3,415,080 | $1,352,372 | 407.0:1 | $5,655,836 | 1704.0:1 |
| Office | $1,680,000 | 04/01/15 | 2015 | $45,202 | $17,900 | 4.1:1 | $84,529 | 20.3:1 |
NOTE: The above listed tax savings are based on a 39.6% tax rate for the owner.