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.
Storage Facility Cost Segregation Case Study
With vs Without Cost Segregation
Financial Benefits Achieved
Tax Savings Benefit in First Year:
$88,582
NPV Over 5-Years:
$116,007
Future Value of Invested Savings in 15 years:
$242,940
Property Overview
The self-storage facility sits on a 1.29-acre lot. Built in 1980, the property is zoned B3 (Commercial/Industrial) and has over 100 rentable units, as well as a rentable warehouse and rentable parking spaces. The storage facility boasts several different sizes of units from 5 x 10 all the way up to 10 x 20, as well as car + truck parking. On the site sits a rentable warehouse with electricity, lighting, and running water. On the property are also two bathrooms.
Cost Segregation Results
18.36%
5 Year Assets Reallocated
13.30%
15 Year Assets Reallocated
68%
27.5 or 39 Year Assets Reallocated
The cost segregation study performed by Seneca Cost Segregation found $276,187 in assets that qualified for faster depreciation through 5 and 15-year property reclassifications. This led to a tax savings of $85,317 in the first year alone, thanks to 80% bonus depreciation. The study's impact goes beyond just the first year, with tax benefits worth $158,186 over 15 years. When reinvested, these savings will help the Storage Facility investors acquire another property faster, improving their return even more, showing just how valuable cost segregation can be for self storage facility investors and real estate investors at large.
Property Type:
Self-Storage Facility
Purchase Price(less land):
$872,550
Cost of Improvements:
$0
SQFT:
56,062
Acquired:
July 2023
Tax Year Study Applied:
2023
Tax Rate:
37%
Bonus Depreciation:
80%
