Ownership Tax Benefits
The IRS will allow depreciation based upon the building percentage of the total value. Therefore, $10,150,000 multiplied by the building percentage of 57% is $5,785,500. The IRS mandates that this is spread out over 39 years, therefore, $5,785,500 divided by 39 years is $148,346 on an annual basis. If this is taxed at a 33% tax rate this would be a $48,954 tax savings due to depreciation per year of ownership. On a monthly basis this would be $4,079 per month, and on a per square footage basis, the tax benefits due to deprecation would be $0.098 per month.
Tax, Utilities, Operating Expenses
Total Monthly Tax Benefits
After-Tax Monthly Cost