{"id":968,"date":"2025-01-24T12:51:44","date_gmt":"2025-01-24T12:51:44","guid":{"rendered":"https:\/\/leyton.com\/us\/white-papers\/cost-segregation-case-study-assisted-living\/"},"modified":"2026-07-26T16:58:30","modified_gmt":"2026-07-26T14:58:30","slug":"cost-segregation-case-study-assisted-living","status":"publish","type":"whitepaper","link":"https:\/\/leyton.com\/us\/insights\/white-papers\/cost-segregation-case-study-assisted-living\/","title":{"rendered":"Cost Segregation Case Study \u2013 Assisted Living"},"content":{"rendered":"

Maximize Your Assisted Living’s<\/mark><\/strong> Tax Strategy<\/h2>

What is Cost Segregation<\/mark><\/strong>
Cost segregation<\/mark><\/a> <\/strong>is an effective tax planning strategy that helps businesses and individuals involved in constructing, purchasing, expanding, or renovating real estate<\/strong> reduce their tax liabilities by accelerating depreciation deductions, which allows for the deferral of both federal and state income taxes.

Assisted Living<\/mark><\/strong>
Assisted living buildings, like medical offices or apartment complexes, are particularly well-suited for cost segregation due to their specialized design and unique features. Elements such as plumbing, rubber flooring, and other infrastructure components can be depreciated more quickly, resulting in substantial tax savings.<\/strong> This approach maximizes financial benefits by recognizing the specific characteristics of the property, ultimately improving the bottom line for developers and owners of assisted living buildings.
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Practical Example<\/h2>\n

This case study highlights how accelerated depreciation can benefit assisted living buildings with specialized infrastructure and amenities. By optimizing depreciation on assets like medical equipment, flooring, and plumbing, owners can reduce taxable income, improve cash flow, and boost long-term profitability.<\/p>\n

Building information <\/mark><\/h3>\n
\u25cb <\/strong><\/mark>Building Type<\/strong> \ud83e\udc6a <\/mark>Assisted Living
\u25cb <\/strong><\/mark>Property Type:<\/strong> \ud83e\udc6a <\/mark> Residential
\u25cb <\/strong><\/mark>Building Size:<\/strong> \ud83e\udc6a <\/mark> 12,888 SF
\u25cb<\/strong><\/mark> Study Scope:<\/em><\/strong> \ud83e\udc6a <\/mark>Acquisition
\u25cb<\/strong><\/mark> Condition<\/strong>: \ud83e\udc6a <\/mark>Good
\u25cb<\/strong><\/mark> Filling Year:<\/strong> \ud83e\udc6a <\/mark> 2023
\u25cb<\/strong><\/mark> Date Placed in Service:<\/strong> \ud83e\udc6a <\/mark> 2020
\u25cb<\/strong><\/mark> Purchase Price less Land or Total Construction Cost:<\/strong> \ud83e\udc6a <\/mark> $15,000,000
\u25cb<\/strong><\/mark> Tax Rate:<\/strong> \ud83e\udc6a <\/mark> 30%
\u25cb<\/strong><\/mark> Return on Investment Factor:<\/strong> \ud83e\udc6a <\/mark> 8%<\/div>\n

Summary of Benefits<\/mark><\/h3>\n
\u25cb<\/mark> 25% Additional Tax Deductions in First Year:<\/strong> \ud83e\udc6a <\/mark>$2,002,200

\u25cb<\/mark> RNPV Over Remaining Life of Property<\/strong>: \ud83e\udc6a <\/mark> $637,141

\u25cb<\/strong><\/mark> <\/em>Net Present Value (NPV) Over 10 Years:<\/strong> \ud83e\udc6a<\/mark> $804,889<\/div>\n\n

Building Allocation After Study<\/h3><\/div>

5 Year Property <\/h4>

Depreciable Basis: $2,391,378 at 16%<\/p><\/a><\/div>

7 Year Property <\/h4>

Depreciable Basis: $125,862 at 1%<\/p><\/a><\/div>

15 Year Property <\/h4>

Depreciable Basis: $1,126,526 at 8%<\/p><\/a><\/div>

39 Year Property <\/h4>

Depreciable Basis: $11,356,234 at 76%<\/p><\/a><\/div>

Total<\/h4>

Depreciable Basis: $15,000,000 at 100%<\/p><\/a><\/div><\/div><\/div>\n\n

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At Leyton USA<\/h2>\n

We help companies unlock millions in funding through R&D tax credits, energy incentives, state, and local tax programs. Our experts partner with finance and executive teams to identify overlooked opportunities, improve cash flow, optimize tax positions to reinvest savings into innovation and sustainable growth.<\/p>\n \n Learn About Us \n arrow_outward<\/span>\n arrow_outward<\/span>\n <\/span>\n <\/a>\n <\/div>\n <\/div>\n\n \n

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\n <\/em>65 <\/p>\n \n Industries Served <\/span>\n <\/div>\n <\/div>\n

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\n <\/em>25 <\/p>\n \n Years of Experience <\/span>\n <\/div>\n <\/div>\n

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\n <\/em>75 <\/p>\n \n Tax & Technical Experts <\/span>\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n<\/div>\n<\/div><\/section>","protected":false},"excerpt":{"rendered":"

Maximize Your Assisted Living’s Tax Strategy What is Cost SegregationCost segregation is an effective tax planning strategy that helps businesses and individuals involved in constructing, purchasing, expanding, or renovating real estate reduce their tax liabilities by accelerating depreciation deductions, which allows for the deferral of both federal and state income taxes. Assisted LivingAssisted living buildings, […]<\/p>\n","protected":false},"author":1,"featured_media":969,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[187],"tags":[107,111,109],"expertise":[372],"class_list":["post-968","whitepaper","type-whitepaper","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized-en","tag-cost-segregation-en","tag-cpa-en","tag-tax-professionals-en","expertise-real-estate-tax-optimization"],"acf":[],"yoast_head":"\nAssisted Living Building Cost Segregation Case Study | Leyton<\/title>\n<meta name=\"description\" content=\"Discover Assisted Living Building Cost Segregation with Leyton. significantly reduce your tax burden with this tax planning tool.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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