The world of apartment complexes presents diverse challenges for cost segregation. This case study revolves around a vast 18-building garden-style apartment complex, showcasing how Source Advisors transformed the financial landscape of the property’s acquisition.
The property is an eighteen building, 144 unit, garden style apartment complex that was acquired for $6,700,000 and placed-in service in 2018.
It totals 113,000 square feet and sits on a 6.75 acre site.
As with many garden style apartment complexes, the site is improved with ample parking but simple landscaping. The entire property is fenced in with motorized gate access.
The buildings are two-story, wood frame structures, with brick facades and asphalt. shingle roofs. Interior finishes such as carpeting, vinyl flooring and cabinetry are of average quality as are the kitchen appliances.
With 18 buildings spread across 6.75 acres, the sheer size and diversity of the property called for a meticulous examination of each unit and common area.
Identifying and evaluating the average-quality components like carpeting, vinyl flooring, and standard kitchen appliances required a keen eye to ensure that these were classified correctly in the spectrum of property grades.
Source Advisors Cost Segregation engineers were engaged to analyze the acquisition cost. They then applied a cost model to allocate the purchase price to various trades and building components.
Our engineers conducted a thorough inspection of the property where estimates were performed. Key property personnel were also interviewed. A detailed report was delivered, identifying and documenting all the components that qualify for a shorter tax life.
Don’t leave money on the table. Contact Source Advisors to find out how Cost Segregation can work wonders for your bottom line.
Our industry experience with cost segregation has helped businesses claim billions of dollars in tax credits and incentives.
Our engineers excel at delineating construction costs to yield the highest tax benefits.
Our 40-year history of achieving substantial tax credit savings for clients across various industries is a testament to our commitment and expertise.
Our thorough reporting ensures every qualifying cost is adeptly reclassified.
Our dedicated support team is readily available to guide you through every step of the process, ensuring a smooth and stress-free experience.
Our recommendations stand in full compliance with tax legislations, offering clients unmatched peace of mind.
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