With a personal property appraisal (residential cost segregation report) by Mercury Chattel Appraisals, accelerated depreciation on personal property can save you thousands of dollars as shown by the examples below:
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Year 1
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Single Family Home
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Without a Personal Property Appraisal
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With an Appraisal
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Land
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$40,000
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$40,000
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Building
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$160,000
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$140,000
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Personal Property
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-
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$20,000
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Depreciation Allowance 25% tax bracket
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$5,818.18
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$9,090.91
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Potential Tax Savings
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$1,454.55
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$2,272.73
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| |
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Increased Tax Savings of $818.00
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Year 2
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Without a Personal Property Appraisal
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With an Appraisal
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Land
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$40,000
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$40,000
|
|
Building
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$160,000
|
$140,000
|
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Personal Property
|
-
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$20,000
|
|
Depreciation Allowance 25% tax bracket
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$5,818.18
|
$11,490.11
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|
Potential Tax Savings
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$1,454.55
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$2,872.73
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| |
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Increased Tax Savings of $1,418.00
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Investor #1: In the 25% tax bracket, purchased a 2/2 duplex in past year for $300,000. The home had about $30,000 in chattel value. With a chattel appraisal, the investor saved approximately $1,500 on taxes in the first year, with an additional $6,000 to be saved over the next five years.
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Investor #2: In the 35% tax bracket, purchased a 3 bedroom condominium last year for $250,000. The condominium had about $14,370 in chattel value. The investor saved $1,005 on taxes in the first year, with an additional $4,024 to be saved over the next five years.
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Investor #3: In the 40% tax bracket, purchased a five family apartment building last year for $500,000. The apartment building had about $50,000 in chattel value. The investor saved $3,500on taxes in the first year, with an additional $14,000 to be saved over the next five years.
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Click the links below to download the two forms needed for an appraisal and then fax them to us at: (973) 927-8172. It's that easy to get started.
Client Questionnaire Form
Request for Appraisal Form
*Disclaimer* No Federal or state tax advice is or has been provided. The above examples are typical, using conservative numbers. Your own savings will depend on the value of your property, the amount of chattel, and your tax bracket. You should seek advice from an independent tax advisor for information specific to your situation.