[How Accelerated Depreciation and Benefits are Realized]
The table below provides an EXAMPLE of how a Commercial Property owner realizes benefits when utilizing the
accelerated depreciation (identified by an engineering based COST SEGREGATION ANALYSIS) because:
--> the INCREASED depreciation lowers the overall taxable income
--> the LOWER TAXABLE income, means lower taxes to be paid
--> which means MORE MONEY stays in your pocket!!
NOTE: This example is to communicate the "CONCEPT" of benefits received via Accelerated Depreciation
The assumptions below include:
- Tax Rate of 40%
- The Cost Segregation Study identified 30% of real property to be reclassified to personal property,
changing the asset life from 39 to 5, 7, or 15 years.