Cost Segregation Studies in Arizona
Perks of Cost Segregation in Arizona
Identify and Reclassify
Arizona's booming real estate market benefits from cost segregation by reclassifying assets into shorter recovery periods. This enables property owners to take advantage of early tax savings.
Minimize Taxes in Arizona
Arizona property investors can minimize taxes by applying cost segregation to reallocate assets into shorter depreciation classes. This strategy reduces taxable income and improves cash flow.
Increase Profitability
Arizona property owners increase profitability by leveraging cost segregation to maximize early-year tax deductions. This creates opportunities to reinvest in the state’s competitive real estate market.
State Depreciation Dynamics
Arizona’s real estate market offers prime opportunities for investors to benefit from cost segregation. The state conforms to federal bonus depreciation rules, allowing property owners to streamline filings and claim accelerated depreciation for both federal and state taxes. This alignment simplifies tax compliance and enhances savings.
With an impressive 11.88% population growth, Arizona’s housing and commercial markets are booming. Cost segregation helps property owners reclassify high-value components into shorter depreciation schedules, creating substantial early tax savings and freeing up cash flow for reinvestment in this competitive market.
Arizona’s property tax rate of 0.63% and median home value of $444,220 make it a key state for leveraging cost segregation. To learn more, visit Explore the best asset classes for cost segregation
Program Benefits
High Referral Fees: Earn 20% for each successful referral.
Valuable Service: Cost segregation studies range from $4,000 to $9,000.
Client Satisfaction: Help your clients save thousands on taxes.
How It Works
Refer: Introduce your clients to the benefits of cost segregation and refer them to us.
Connect: Ensure they mention your referral when they contact us.
Earn: Receive 20% of the fee once the cost segregation study is completed.
Arizona Cost Segregation FAQ
Can I do cost segregation for Arizona real estate?
No, Arizona does not conform to federal bonus depreciation rules. Property owners must follow the state’s depreciation schedule for state tax purposes, requiring separate tracking for state and federal filings.
Is there a bonus depreciation for real estate in Arizona?
This state does not conform to federal bonus depreciation rules.
How much does cost segregation cost in Arizona?
In Arizona, Engineered Modeling Studies often cost between $1,000-$1,500, while Detailed Engineering Studies can range from $3,400-$10,000.
How does state income tax affect cost segregation in Arizona?
Arizona’s property tax rate of 0.63% and median home value of $444,220 make cost segregation an impactful tool for lowering federal and state tax liabilities.
What is the state property tax rate in Arizona?
0.63%
Population Growth by State:
11.88%
Arizona population growth and cost segregation:
Rapid population growth in Arizona underscores the state’s booming housing and commercial real estate markets, making cost segregation crucial for maximizing tax savings in this high-growth environment.
Case Study: Cost Segregation Study Generates $228,074 in First Year Tax Savings for Arizona self storage facility Investment.
This case highlights the tangible advantages of employing strategic tax planning and cost segregation for real estate investors in Arizona's dynamic market, underscoring the importance of informed financial strategies for long-term success.
Property Details
In Arizona our client acquired a Office Building for $1,932,456 with the land valued at $410,812. To maximize their investment and optimize tax benefits, they engaged our team to conduct a comprehensive cost segregation study. Our analysis allowed us to identify and accelerate depreciation on various building components.
Maven Cost Segregation Results
In 2022 our client acquired a(n) self storage facility in Arizona for $1,932,456 with the land valued at $410,812. To maximize their investment and optimize tax benefits, they engaged our team to conduct a comprehensive cost segregation study. Our analysis allowed us to identify and accelerate depreciation on various building components.
Sean Graham
Founder of Maven Cost Seg
Sean is the founder of Maven Cost Seg. As a real estate investor and a registered CPA, Sean understands the tax benefits of cost segregation studies.