Cost Segregation Study (CSS) Template Overview
The CSS Template offers a comprehensive suite for conducting a detailed cost segregation study, allowing users to:
- Define Depreciation: Manually set depreciation percentages for every asset category, enhancing granularity.
- Accelerated Depreciation: Segregate components to capitalize on accelerated depreciation schedules. Instead of the typical 27 or 39-year timeline, parts can be categorized into more aggressive 5/10/15-year schedules.
- Tax Benefits: Although the overall depreciation remains constant, with CSS, the tax benefit is realized earlier, leading to better cash flow. This cash can be reinvested, and due to the time value of money, there’s an actual gain in accessing a higher depreciation expense at the earliest, as allowed by the IRS.
Key Features:
Data Input:
- Property purchase date.
- Tax year of the CSS execution.
- Discount rate.
- Tax rate.
- New depreciation categories, e.g., land improvements, parking lots, and personal property.
- Their respective annual depreciation rates.
Output Analysis:
- Allocation overview (pre and post-CSS) with a visual pie chart.
- Yearly depreciation comparison: standard versus cost segregation approach. The annual differential, when multiplied by the tax rate, gives the yearly benefit in present value terms.
Note: If the study is executed years post the initial purchase, the template adjusts accordingly. The tax benefit for the first year might encapsulate variances from the preceding years. The model’s discount rate will also adapt to the study’s timing relative to the purchase. While future years may show a net negative benefit, the emphasis is on the present-time value of money. Consequently, future negative values have a diminished present-day value, as do future positive cash flows.
Important: A property can undergo a cost segregation study only once during its ownership.
Similar Products
Other customers were also interested in...
Joint Venture and Fund Cash Flow Waterfall Templat...
Here are all the spreadsheets I've built that involve cash flow distributions between GP/LP. Include... Read more
Investment Fund Preferred Return Tracker: Up to 30...
Track preferred returns for investors in a fund with this template. Premium joint venture tracking t... Read more
Public-Private Partnership (PPP) Financial Model
Financial Model presenting development and operating scenarios of various projects under a Public-Pr... Read more
Quantity Surveyor / Architect – Project Fina...
This Project Feasibility Model is purpose-built to assist Quantity Surveyors, Architects, Developers... Read more
All My Financial Models, Spreadsheets, Templates, ...
Lifetime access to all future templates as well! Here is a set of spreadsheets that have some of the... Read more
Mixed-Use Real Estate Model: Leverage / JV Options
A general real estate model to plan all assumptions for up to 7 'uses' for a given property. Include... Read more
Small Business Playbook (Financial / Tracking Temp...
About the Template Bundle: https://youtu.be/FPj9x-Ahajs These templates were built with the ... Read more
Franchisor Licensing: Financial Model with Cap Tab...
Build up to a 10 year financial forecast with assumptions directly related to the startup and operat... Read more
Apartment Building / Self-Storage / Multi-Family A...
This real estate model works great for acquisitions of apartment buildings, multi-family properties,... Read more
Real Estate Brokerage Economic Analysis
Create up to a 10 year financial forecast for a real estate brokerage operator. Includes three way m... Read more
You must log in to submit a review.