Our clients own a portfolio of halfway houses and we helped them leverage cost segregation studies to unlock substantial accelerated depreciation benefits.
This $4.5 million, 100-bed facility in Southern NJ underwent a thorough cost segregation analysis, identifying key components for accelerated depreciation. The vinyl flooring and parking lot emerged as the primary assets driving tax savings, allowing the owners to claim $255,000 income tax savings—a significant boost to their bottom line.
Using a similar strategy for a $1.3 million, 30-bed halfway house in Essex County, NJ yielded a $35,000 income tax savings. Here, the kitchen appliances and carpeting were the standout assets, qualifying for accelerated depreciation.
If you own a halfway house, apartment complex, or commercial property, a cost segregation study could be the key to maximizing your tax savings. Contact us for a free estimate—all we need is an address to get started!
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The provided examples are for illustrative and informational purposes only. Results may vary depending on individual circumstances, and Manufacture Results LLC cannot guarantee the same outcome for others. Be sure to consult your own legal and tax professionals when making decisions for your specific situation.