Cost Segregation Studies for Phoenix, AZ
While Phoenix, AZ is known for being a tourist paradise, it is far more than that. The second fastest-growing metro area in the United States, Phoenix is now a haven of commercial development and investment. Tourism is still the No. 1 trade for the Valley of the Sun, with over 500 hotels and 40 resorts, plus more than 50 golf courses. Phoenix is also a key retirement destination, or a place for vacation homes during the winter months.
Hotels, resorts, and retirement communities are all bountiful targets for cost segregation. These combine the opportunities for short-life depreciation of apartments and those of traditional businesses. With plenty of common areas, rooms, kitchens, parking lots, and signage, these property types are the dream for any cost segregation appraiser. The construction boom, along with a constant stream of renovations, means that all other commercial properties in the area are ripe for the picking as well.
O’Connor’s expert appraisers go all across the globe, but Phoenix is one of their most common destinations. There is so much fertile ground to explore that Phoenix is one of our Top 10 targets. Our experts have done over 10,000 cost segregation reports across the planet and have decades of combined experience. We at O’Connor can find every bit of depreciation, while also pleasing the IRS and their strict rules about methods, results, and documentation. The table below lists a few Phoenix businesses that we have been able to assist in the past.
Phoenix, AZ Real 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 |
|---|---|---|---|---|---|---|---|---|
| Retail | $9,577,294 | 01/01/16 | 2016 | $287,989 | $114,044 | 34.6:1 | $589,950 | 180.0:1 |
| Multifamily | $57,850,000 | 10/01/15 | 2015 | $575,671 | $227,966 | 69.1:1 | $3,816,266 | 1158.0:1 |
| Hotel | $8,310,000 | 09/01/15 | 2015 | $415,124 | $164,389 | 58.2:1 | $676,457 | 240.0:1 |
| Retail Strip Cntr. | $3,879,720 | 04/01/15 | 2015 | $94,511 | $37,426 | 13.2:1 | $198,691 | 71.3:1 |
| Multifamily | $3,554,802 | 09/01/15 | 2015 | $203,181 | $80,460 | 29.6:1 | $317,909 | 118.0:1 |
Results
** Mid-Quarter depreciation convention utilized due to purchase date.
NOTE: The above listed tax savings are based on a 39.6% tax rate for the owner.
