Case Studies

Single Family Home = Example of Tax Savings

Year One	Non Chatteled	Chatteled
Land	$40,000	$40,000
Building	$160,000	$140,000
Personal Property	-	$20,000
27.5 Year Depreciation Allow	$5,818	$5,090
1st Year Deduction with Appraisal	-	$4,000
Total Deduction 1st Year	$5,818	$9,090
Tax Bracket - 25%	-	-
Potential Savings	$1,454	$2,272

Increased Tax Savings - $818.00

Year Two	Non Chatteled	Chatteled
Land	$40,000	$40,000
Building	$160,000	$140,000
Personal Property	-	$20,000
27.5 Year Depreciation Allow	$5,818	$5,090
2nd Year Deduction with Appraisal	-	$6,400
Total Deduction 2nd Year	$5,818	$1,490
Tax Bracket - 25%	-	-
Potential Savings	$1,454	$2,872

Increased Tax Savings $1,418.00

Over the first two years of ownership that is a tax savings of $2,236 which translates into a return on the investment of 275%. That is an annual return on investment of 137%.

What is delivered to the owner upon completion of the appraisal?

• Two copies of the cost segregation report; one copy for the client, one copy for their CPA with CPA instructions
• Electronic copies (CD) of pictures of the reported chattel
• An inventory list detailing quantity and descriptions of the chattel
• Model numbers and serial numbers of appliances – useful with insurance companies if ever a claim is filed
• Receipt for appraisal service

Recap of the benefits of a Chattel Appraisal

• Can significantly reduce taxes
• Can often create an after tax, cash flow positive real estate investment
• Accelerates an often under-utilized and legal depreciation
• Cost of the appraisal is tax deductible
• Independent third party verification of assets allowing substantial tax savings
• Creates an inventory with written visual description of personal property. This can be helpful in dealing with insurance companies in the event of a loss
• Independent chattel appraisals are valuable aides in the event of an audit

Call for your personalized chattel valuation today!
(314) 369-6660