Cost Segregation Studies for Ohio
Ohio is the quintessential Mid-Western state. Outside of wide-open spaces and scenic river valleys, Ohio has many great cities, including Cleveland, Cincinnati, and Columbus. Ohio has a long history of being an industrial center, and that has not changed, with manufacturing, fabricating, refining, and other industrial processes being the top moneymakers. But Ohio also has a growing green energy industry, as well as biotechnology and finance.
Ohio’s rich and diverse economy means that there are plenty of commercial properties that could benefit from cost segregation. While most commercial properties can be helped with this technique, cost segregation benefits those with high incomes the most, as depreciation can only offset income if there is enough income to offset. Industrial and office properties are goldmines for short-life and long-term depreciation, though green industry structures typically benefit the most.
Whether you want an analyst on-site or just want help making your cost segregation report, O’Connor has the expert appraisers ready to serve your needs. Our appraisers are adept at finding deprecation in the most unlikely of places and have prepared over 10,000 cost segregation reports. Our experts know how to put together a report that meets all of the requirements from the IRS, including credible methods, results, and documentation. Take a look at the following table and see what we have done for commercial property owners just like you.
Real Cost Segregation Results in the Buckeye State
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 | $2,333,910 | 04/01/16 | 2016 | $129,199 | $51,163 | 15.7:1 | $212,905 | 66.3:1 |
Strip Center | $6,180,147 | 08/01/06 | 2014 | $1,169,309 | $463,046 | 160.0:1 | $478,445 | 166.0:1 |
Medical Office | $400,764 | 01/01/09 | 2014 | $110,870 | $43,905 | 14.5:1 | N/A | N/A |
Retail | $4,239,496 | 10/01/06 | 2015 | $981,000 | $388,476 | 165.0:1 | N/A | N/A |
Multifamily | $20,712,820 | 10/01/08 | 2015 | $4,841,447 | $1,917,213 | 635.0:1 | N/A | N/A |
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.