Multi-Family
Project Overview
This modern 45-unit apartment building located in Fort Lauderdale offers a mix of thoughtfully designed one- and two-bedroom units, each featuring high-end finishes, open-concept layouts, and large windows that provide abundant natural light. Additionally, this multi-family housing development is structured to take advantage of cost segregation strategies, allowing for significant tax benefits for investors. The building also includes a range of amenities, such as a fully equipped fitness center, a resident lounge, and secure parking.
The cost segregation study conducted by Taxero Cost Segregation identified $1,612,500 in assets eligible for faster depreciation through 5 and 15-year property reclassifications. This resulted in significant tax benefits for investors, amounting to $596,625 in the first year, driven by 100% bonus depreciation. When these savings are reinvested, they empower multi-family housing investors to acquire additional properties more swiftly, enhancing their ROI even further. This illustrates the immense value that cost segregation offers to multi-family investors and real estate investors as a whole.
The total yield on depreciable assets in the first year, achieved through this cost segregation study, was 32.3%. In other words, we have identified deductible assets within the multi-family housing building that account for 32.3% of the total value of the structure, resulting in very satisfactory tax benefits for investors. This positive outcome is due to the reallocation of 5yr and 15yr assets, respectively.
The chart clearly illustrates how a cost segregation strategy enhances depreciation in the early years of ownership, showcasing significantly higher first-year and front-loaded deductions compared to the standard 27.5- or 39-year straight-line method. This visual effectively highlights the increased early cash flow and improved tax efficiency, particularly for multi-family housing investments, while revealing the power of unlocking hidden value within a property. It serves as an excellent demonstration of the immediate financial impact and tax benefits for investors derived from a cost segregation study at a glance.