Cost Segregation Studies in Miami
Miami may be the most glorious city in the United States and continues to bring in tourists worldwide. From diverse working-class communities to multi-million-dollar high-rises, Miami has a variety of neighborhoods and businesses. Whether it is transportation, tourism, entertainment, shipping, or any of the other litany of commercial property types, Miami is a prime candidate for cost segregation.
Due to the frequency of hurricanes and the stormy climate, Miami commercial properties are bountiful sources of short-life and long-term depreciation. These sources can be found inside a building, but exterior sources are often overlooked. Landscaping, fencing, parking lots or structures, lighting, and more are all external items that can be used for cost segregation. Apartment buildings and senior living buildings are two of the largest commercial property types in Florida, and Miami is no different. Such properties are rich in both internal and external opportunities.
We at O’Connor love to take our talents to South Beach! Our experts and appraisers always work hard but certainly don’t complain about taking some time to hang out in Miami. With over 10,000 successful cost segregation reports, we at O’Connor know how to get you the best deal, while also pleasing the IRS and their intense rules. We will find every scrap of depreciation, even in the most unlikely of places. A professional site visit can add 10% or more depreciation to a cost segregation report, bringing home huge savings. Below is a table that shows some Miami commercial properties that we were able to help.
Real Miami 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 |
|---|---|---|---|---|---|---|---|---|
| Multifamily | $25,830,000 | SEP 2015 | 2015 | $1,093,622 | $430,054 | 95.6:1 | $1,742,677 | 387.3:1 |
| Office | $4,964,198 | 08/01/15 | 2015 | $128,157 | $50,750 | 17.0:1 | $239,612 | 81.1:1 |
| Private School | $11,766,236 | 07/01/15 | 2015 | $223,895 | $88,663 | 29.7:1 | $437,476 | 147.0:1 |
| Medical Office | $1,106,704 | 01/01/16 | 2016 | $29,793 | $11,798 | 6.6:1 | $42,794 | 24.8:1 |
| Multifamily | $24,705,000 | 05/01/15 | 2015 | $826,638 | $327,349 | 108.0:1 | $1,425,416 | 473.0:1 |
NOTE: The above listed tax savings are based on a 39.6% tax rate for the owner.