Medical & Dental Offices

The property was purchased for $1,075,000. Located on a 1.07 acre tract, an analysis indicated that 20%, or $215,000, should be allocated to the value of the land, with the remaining $860,000 allocated to the improvements. During our visit to the property we identified site improvements including a monument sign, concrete paving, pole parking lights, a storm sewer system, landscaping, and a detachable building canopy, all of which qualified for accelerated depreciation. Our interior walkthrough revealed additional short-life depreciable assets, including luxury vinyl tile, special-use plumbing and electrical services dedicated to supporting the medical/dental function of the building, decorative sconce lighting, custom reception and checkout counters, built-in desk systems, decorative crown molding, and window coverings. Additionally, the x-ray room included leaded walls for containment purposes. As a result of the study we were able to segregate the $860,000 improvement/depreciable basis into the following depreciation classes:

5- year: $138,202
7- year: $1,252
15- year: $165,423
39- year: $555,123
TOTAL: $860,000

Again, with 100% Bonus Depreciation the net first year depreciation was $318,539, with a first year tax savings of $117,859 and a payback ratio of 30:1.