Retail Shopping Center in California
Cost segregation study on a $2.5M retail property with bonus depreciation analysis.
Property Type
Retail Center
Location
Los Angeles, California
Purchase Price
$2,500,000
Tax Savings
$156,000
Background
A 35,000 sq ft retail shopping center with modern HVAC, lighting, and energy-efficient systems. The property had energy efficiency certifications that qualified for additional tax credits.
Strategies Used
Cost Segregation
100% Bonus Depreciation
Section 179D Energy Credits
Our Analysis
Our analysis identified energy-efficient building materials and systems that qualified for Section 179D deductions in addition to standard cost segregation benefits. We separated personal property components and land improvements from the building structure.
Results
- $446,000 in Year 1 depreciation
- $156,000 in total tax savings (first 3 years)
- $42,000 in energy efficiency credits
- Average annual deduction of $148,000 over 5 years
"The energy credits alone saved us tens of thousands. TaxScout found benefits we didnt know existed."
Sarah Chen
Portfolio Manager