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.
Mobile Home Park Cost Segregation Case Study
With vs Without Cost Segregation
Financial Benefits Achieved
First Year Tax Deduction:
$248,628
Tax Savings Benefit in First Year:
$91,993
Tax Savings Value in 15 Years at 8% Return:
$270,200
Property Overview
After the fires ripped through Paradise, CA, businesses, homes, and structures were leveled. This Mobile Home Park was revived through substantial investment, bringing housing back to the area. Bought for $1,800,000, the owners invested another $70,000 into amenities, improving hook ups, and improvements to the pads. Set on a 570,000 sqft lot, much of the value is land, but the infrastructure and property that remains is highly depreciable.
Cost Segregation Results
1.53%
5 Year Assets Reallocated
83.00%
15 Year Assets Reallocated
15%
27.5 or 39 Year Assets Reallocated
The cost segregation study performed by Seneca Cost Segregation found $313,796 in assets that qualified for faster depreciation through 5 and 15-year property reclassifications. This led to a tax savings of $91,993 in the first year alone, thanks to 80% bonus depreciation. The study’s impact goes beyond just the first year, with the First Year tax savings worth $270,200 over 15 years. When reinvested, these savings will help the Mobile Home investor acquire another property faster, improving their return even more, showing just how valuable cost segregation can be for Mobile Home Park investors and real estate investors at large.
Property Type:
Mobile Home Park
Purchase Price(less land):
$1,800,000
Cost of Improvements:
$70,000
SQFT:
570,000
Put in Service:
March 2024
Tax Year Study Applied:
2024
Tax Rate:
37%
Bonus Depreciation:
80%
