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Featured Project #3
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New Construction I Limited Service Hotel
The recently developed hotel property consists of a five-story building connected to a one-story atrium. The atrium provides space for the lobby, restaurant, bar, gift shop, meeting rooms, and hotel offices. Additional amenities at the site include a pool, exercise room, guest laundry room, and a patio area.
• Placed in Service: June 2008
• Tax Year for CSS: 2008
• Site/Lot Size: 2.3 Acres
• Number of Buildings: 1
• Gross Building Area: 93,009 SF
• Total Depreciable Basis: $11,985,581
Summary of Benefits
The following is a summary of estimated benefits calculated using a combined tax rate of 40% and a discount rate of 8%. The actual benefit is based on the client’s effective tax rate.
| Additional Depreciation Year 1 | $707,703 |
| Additional Taxes Deferred Year 1 | $283,081 |
| Additional Taxes Depreciation Years 1 – 5 | $3,220,102 |
| Additional Taxes Deferred Years 1 – 5 | $1,288,040 |
| 10 Year NPV of Cash Flow: | $1,127,665 |
Allocation of Costs
| Personal Property | MACRS 5-Year | $3,649,345 |
30.4% |
| Personal Property | MACRS 7-Year | $11,196 |
0.1% |
| Land Improvements | MACRS 15-Year | $779,867 |
6.5% |
| Real Property | MACRS 39-Year | $7,545,173 |
63.0% |
Total |
$11,985,581 |
100.0% |
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Depreciation Before & After (Years 1-10)
