Indiana Cost Segregation
Indiana is a diverse state with many industries. While being well-known for agriculture, it is also one of America’s main manufacturing hubs. With cities like Indianapolis, South Bend, Fort Wayne, and Evansville, Indiana has strong urban centers that are packed with every industry imaginable. Indiana is certainly more than just soybeans and corn. In both urban and rural environments, cost segregation can make a difference for commercial property owners.
Backed by the IRS, cost segregation allows the owners of commercial property to use short-life and long-term depreciation to produce big savings on income taxes. This can be especially effective on commercial properties like warehouses, factories, office buildings, and car dealerships. The expansive nature of Indiana’s cities means that there are tons of opportunities to find all manner of depreciation.
The IRS requires that cost segregation reports have accurate methods, results, and documentation. O’Connor is here to be your expert in all of these categories. At O’Connor, we will use our 20 years of cost segregation experience to find every piece of depreciation available. We often travel to Indianapolis or Fort Bend to do this, but we will go any place in Indiana that needs us. The following chart will give you a taste of what we do. These are all real Indiana businesses that we at O’Connor were able to help.
Real Indiana Cost Segregation Success Stories
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 |
---|---|---|---|---|---|---|---|---|
Mini-Storage | $572,352 | 08/01/15 | 2015 | $192,731 | $76,322 | 30.1:1 | $87,787 | 35.6:1 |
Medical Office | $778,191 | 09/01/15 | 2015 | $177,524 | $68,503 | 39.1:1 | $76,233 | 43.4:1 |
Multifamily | $24,585,750 | 03/01/14 | 2014 | $853,224 | $337,877 | 96.4:1 | $1,507,203 | 431.0:1 |
Medical Office | $949,055 | 11/01/15 | 2015 | $180,944 | $71,654 | 39.9:1 | $79,700 | 45.4:1 |
Medical Office | $946,775 | 10/01/15 | 2015 | $192,479 | $76,222 | 42.4:1 | $87,875 | 49.9:1 |
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.