Multi-Family Complex in Dallas, TX
A 50-unit apartment complex leveraged cost segregation and multi-strategy tax optimization.
Property Type
Apartment Complex
Location
Dallas, Texas
Purchase Price
$3,500,000
Tax Savings
$127,000
Background
Our client purchased a recently renovated 50-unit apartment complex in Dallas. The property was built in 2015 and had undergone significant capital improvements including new roof, HVAC systems, and interior renovations.
Strategies Used
Cost Segregation
100% Bonus Depreciation
Opportunity Zone Analysis
Our Analysis
Using our intelligent analysis, we identified that 35% of the property value could be assigned to items eligible for accelerated depreciation under bonus depreciation rules. The analysis also revealed Opportunity Zone status that could provide additional benefits if reinvestment strategies were implemented.
Results
- 568,000 in first-year depreciation deductions
- $127,000 in federal tax savings (at 35% marginal rate)
- 10-year NPV of $421,000
- Opportunity for 15% basis step-up through OZ reinvestment
"TaxScout identified tax savings we would have completely missed. The analysis was thorough, professional, and the results exceeded our CPA recommendations."
John Martinez
Real Estate Investor & Property Manager