Cost Segregation Studies for Seattle, Washington
Known for innovation in both tech and music, the “Emerald City” of Seattle, WA is one of the fastest-growing metro areas in America. Focused on green and clean technologies, along with tourism, manufacturing, shipping, international trade, and the arts, Seattle boasts a diverse range of commercial properties. As the city continues to grow as an alternative to California, even more businesses are sure to flourish in the city, as it is one of the top start-up locations in America.
With a heady mix of business and art, along with plenty of new construction and renovation, the commercial properties of Seattle are perfect for cost segregation. Green buildings and structures are some of the most viable buildings to use cost segregation on, and that alone makes Seattle the perfect target. Traditional commercial properties of all sorts can still benefit from cost segregation, using both external and internal components. Internal components include carpeting, fixtures, plumbing, machinery, HVAC, and countless others. External targets can be fencing, parking lots, lighting, external paint, landscaping, and driveways.
It takes a keen and professional eye to spot all instances of depreciation, and this often only comes with experience. The appraisers and experts of O’Connor have done over 10,000 successful cost segregation studies, with each of them also pleasing the requirements of the IRS. Our appraisers have decades of experience and have performed well across the entire globe. Seattle is becoming one of our top cities and looks to be even higher in the next decade. The following chart shows some Seattle businesses that benefited by partnering with us.
Real Cost Segregation Results from Seattle
| 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 | $64,800,000 | 10/01/15 | 2015 | $677,105 | $268,134 | 76.5:1 | $4,653,787 | 1,329:1 |
| Office | $2,374,072 | 06/01/15 | 2015 | $70,604 | $27,959 | 38.6:1 | $133,923 | 186.0:1 |
| Multifamily | $1,412,914 | 09/01/08 | 2013 | $292,984 | $116,022 | 50.5:1 | * | * |
| Office | $1,225,176 | 04/01/14 | 2014 | $34,566 | $13,688 | 6.0:1 | $58,940 | 26.7:1 |
| Multifamily | $34,313,088 | 01/01/16 | 2016 | $1,100,027 | $432,349 | 134.0:1 | $2,034,070 | 625.0:1 |
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.
