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.
Single Family Cost Segregation Case Study
With vs Without Cost Segregation
Financial Benefits Achieved
First Year Tax Deduction:
$119,377
Tax Savings Benefit in First Year:
$41,832
Future Value of Savings in 15 Years:
$122,868
Property Overview
This Single Family house in Las Vegas was bought and turned into a Long Term Rental. The owners remodeled the kitchen, improved the bathrooms, and put new flooring in the main areas. The house was constructed in 2013 and includes a garage, a pool, bicycle storage, a game room, HVAC heating and air conditioning, and has 1574 sqft of livable space.
Cost Segregation Results
10.15%
5 Year Assets Reallocated
22.99%
15 Year Assets Reallocated
67%
27.5 or 39 Year Assets Reallocated
The cost segregation study performed by Seneca Cost Segregation found $72,505 in assets that qualified for faster depreciation through 5 and 15-year property reclassifications. This led to a tax savings of $41,832 in the first year alone, thanks to 100% bonus depreciation. The study’s impact goes beyond just the first year, with tax benefits worth $122,868 over 15 years. When reinvested, these savings will help the Single Family investors here acquire another property faster, improving their return even more, showing just how valuable cost segregation can be for single family investors and real estate investors at large.
Property Type:
Single Family Home
Purchase Price(less land):
$370,000
Cost of Improvements:
$50,000
SQFT:
1574
Put in Service:
October 2022
Tax Year Study Applied:
2024
Tax Rate:
37%
Bonus Depreciation:
100%
