Kansas City, MO Cost Segregation
Kansas City is known for BBQ, the Chiefs, and for being home to almost 2 million people over a large metropolitan area. With industries like international law, pharmaceuticals, healthcare, transportation, and manufacturing, Kansas City is one of the most important cities in the Midwest and is an economic engine that runs the entire region.
With so much commercial property spread out over vast distances, there is a lot of room for cost segregation to discover short-life and long-term depreciation. Whether it is the units of an apartment complex or the parking lot of a stadium, commercial depreciation can be used to lower income taxes. This is if the property owner can do a cost segregation report that has accurate methods, results, and documentation.
O’Connor is here to make sure that you meet all IRS requirements. While there is an upfront cost and the rules may be strict, the rewards for a commercial property owner are hard to beat. Cost segregation can mitigate or even nullify all income taxes in the first year, if done correctly. O’Connor will bring a team of experts to find every scrap of depreciation, no matter how obscure. The table below demonstrates just a few clients in Kansas City that were able to save big thanks to cost segregation.
Real Kansas City 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 |
|---|---|---|---|---|---|---|---|---|
| Warehouse | $9,633,483 | 07/01/07 | 2015 | $654,137 | $259,038 | 78.0:1 | * | * |
| Retail | $4,505,000 | 12/01/14 | 2014 | $49,540 | $19,618 | 6.4:1 | $305,349 | 101.0:1 |
| Medical | $1,278,459 | 12/01/15 | 2015 | $203,857 | $80,727 | 44.9:1 | $89,538 | 50.9:1 |
| Multifamily | $3,463,753 | 02/01/05 | 2015 | $574,977 | $227,691 | 66.7:1 | * | * |
| Warehouse | $1,226,656 | 06/01/14 | 2014 | $23,845 | $9,443 | 3.3:1 | $46,428 | 17.4:1 |
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.