Cost Segregation Studies for Oregon
Oregon is one of the most picturesque states in the nation and is a favorite of both tourists and residents. The towering forests are still used to fuel the heart of America’s timber industry, while the many rivers provide hydroelectric power. 60% of the population lives around Portland, while many farming, timber, and fishing communities make up the rest of the state. Portland and Beaverton form the “Silicon Forest,” one of the biggest tech centers in the world.
Whether it is Nike’s headquarters in Beaverton or a lumbermill deep in the woods, all commercial property in Oregon can benefit from cost segregation. Once just a tax loophole for the wealthy, cost segregation is now recognized by the IRS as the only legal way to use depreciation from a commercial property to reduce income tax burdens. Oregon’s varied environments and Portland’s urban sprawl all offer many sources of short-life and long-term depreciation. Rainy weather can take its toll on exterior components, giving more chances to use cost segregation.
If your commercial property helps you generate a high income, then cost segregation is the right move for you. The IRS uses many arcane requirements that can easily confuse or mislead a layperson. Thankfully, O’Connor is here with skilled appraisers and adept experts. Our appraisers have done cost segregation all over the world and have written 10,000 successful reports. You can try to do it yourself while we do the report for you, or you can have one of our appraisers come out for a site visit. Either way, O’Connor can get you results in Oregon that will cut your income taxes. See the table below for others that have benefited from working with us.
Real 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 |
|---|---|---|---|---|---|---|---|---|
| Office | $2,374,072 | 06/01/15 | 2015 | $70,604 | $27,959 | 38.6:1 | $133,923 | 186.0:1 |
| Multifamily | $2,400,000 | 03/01/15 | 2015 | $85,695 | $32,546 | 24.2:1 | $143,367 | 104.0:1 |
| Office | $1,225,176 | 04/01/14 | 2014 | $34,566 | $13,638 | 6.0:1 | $58,940 | 26.7:1 |
| Multifamily | $14,043,750 | 10/01/14 | 2014 | $124,870 | $49,449 | 10.4:1 | $828,818 | 176.0:1 |
| Health Club/Spa | $23,438,520 | 08/01/14 | 2014 | $5,167,567 | $2,046,357 | 525.0:1 | $2,474,274 | 636.0:1 |
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.