Cost Segregation Studies for Connecticut
Connecticut is a small state with a big heart and even bigger property values. While it might not be much on a map, Connecticut has a high population density and one of the highest per capita incomes in the nation. This includes one of the highest ratios of millionaires in the United States.
With a lot of wealth in a tiny package, that makes the property some of the most valuable around. While this can be inconvenient around tax time, cost segregation can take depreciation from a commercial property and use it to lower property taxes. This is the only IRS-approved way to do so, and can provide an incredibly high ROI, with some properties seeing their investment returned at a ratio of 20-1, 75-1, or more.
The IRS is very picky about how this is used and has strict requirements that must be met. Thankfully, O’Connor is here to help. With over 10,000 cases of cost segregation under our belts, we know how to please the IRS. Our cost segregation reports have accurate methods, pristine results, and correct documentation, the three main things that the IRS needs for a successful cost segregation study. The following table shows just a few businesses in Connecticut that used O’Connor to net serious savings.
Real Connecticut Cost Segregation Studies
| 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 |
|---|---|---|---|---|---|---|---|---|
| Retail | $1,175,014 | 12/01/10 | 2010 | $502,643 | $199,047 | 283.0:1 | $253,730 | 362.0:1 |
| Multifamily | $40,575,208 | 10/01/13 | 2014 | $3,306,737 | $1,309,468 | 319.0:1 | $2,810,270 | 685.0:1 |
| Retail | $439,109 | 12/01/12 | 2015 | $141,075 | $55,866 | 59.7:1 | $77,529 | 83.8:1 |
| Multifamily | $3,523,195 | 12/01/14 | 2014 | $788,964 | $312,430 | 103.5:1 | $424,965 | 140.7:1 |
| Multifamily | $565,180 | 06/01/15 | 2015 | $26,508 | $10,497 | 3.3:1 | $43,416 | 14.4:1 |
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.
