Featured Cost Segregation Case Studies
Discover how real property owners across various property types have significantly reduced their tax burden and improved cash flow by getting a Seneca Cost Segregation Study.
Multi-Family Cost Segregation Case Study
With vs Without Cost Segregation
Financial Benefits Achieved
First Year Tax Deduction:
$1,250,371
Tax Savings Benefit in First Year:
$423,006
Future Value of Savings in 15 Years:
$1,242,452
Property Overview
The Waverly Townhomes are a townhouse community located in Albany, Oregon, within Linn County that was a ground-up development from dirt. Constructed in 2021, the property comprises 35 two-story units, offering both one-bedroom (660 sq ft) and two-bedroom (960 sq ft) floor plans. Each townhome features amenities such as in-unit washer/dryer, air conditioning, and stainless steel appliances including a dishwasher.
Cost Segregation Results
19.77%
5 Year Assets Reallocated
3.99%
15 Year Assets Reallocated
76%
27.5 or 39 Year Assets Reallocated
The cost segregation study performed by Seneca Cost Segregation found $1,403,836 in assets that qualified for faster depreciation through 5 and 15-year property reclassifications. This led to a tax savings of $415,535 in the first year alone, thanks to 80% bonus depreciation. The study's impact goes beyond just the first year, with tax benefits worth $1,314,748 over 15 years. When reinvested, these savings will help the Multi-Family investors acquire another property faster, improving their return even more, showing just how valuable cost segregation can be for multi-family investors and real estate investors at large.
Property Type:
Multi-Family Apartment
Purchase Price(less land):
$0
Cost of Improvements:
$5,891,061
SQFT:
21,250
Occupancy Granted:
2023
Tax Year Study Applied:
2023
Tax Rate:
37%
Bonus Depreciation:
80%