Projects

Office

Low Rise Apartments

Engagement Overview:

Bedford was engaged by a national accounting firm to conduct a cost segregation study of a newly completed urban apartment complex. The objective was to identify assets that could be moved to shorter depreciable lives and thereby save taxes. The report was completed under Bedford’s private label program.

Property Overview:

This six story building was newly constructed and placed in service in January 2005 with a total depreciable cost basis of $32,799,000. The building is comprised of 55,000 sf and contains 150 apartment units.

Engineering Process:

Our engineers examined all design and construction documents, contractor payment requisitions and other related data to determine the cost basis for every component in the building. Next, our engineer conducted an onsite study to identify and photograph all assets eligible for accelerated depreciation. Our team (site engineer, costing engineer and tax specialist) then identified assets eligible for accelerated depreciation.

Results:

Our study resulted in a total of $6,002,298 or 19.3% being rescheduled to 5 and 15-year property. As a result, the property owner will save $311,000 in first year tax payments and realize over $1,200,000 in 10-year Net Present Value tax savings.