tax reform savings

How the New Tax Reform Will Boost Your Savings

The new government tax plan will allow many to capitalize on a bonus depreciation of 100% in the first year of self-storage ownership on all building components with 20 years or less of tax life.

Previously, this offer was only available for those who were developing/constructing a facility; now, it is for all who are purchasing a self-storage facility as well.

If you are looking to start or expand a self-storage business, you may be eligible for a tax reform savings benefit.

How does this work? Cost Segregation Services, Inc. usually finds between $50,000 to $80,000 tax savings for every $1 million of the property cost basis minus land. A $2 million property without land can represent $100,000 to $160,000 of actual tax savings write-off in the first year of new ownership.

Recently, they conducted a cost segregation study on a $2,800,000 self-storage purchased in August 2017. At this time there was no bonus depreciation. They compared the same cost segregation study on a purchase in October 2017 with 100% bonus depreciation. Below are the results:


A $2,800,000 self-storage cost segregation study on a purchased facility in August with no bonus allowed:

2017 – $21,363

2018 – $51,542

2022 – $102,662 – in first five years of ownership

*These are cumulative numbers


A $2,800,000 self-storage cost segregation study on a purchased facility in October with 100% bonus allowed:

2017 – $198,515-in the first year of ownership


Cost Segregation Services Inc. is offering all Live Oak Bank borrowers a free predictive analysis. This analysis is not required but will highlight the estimated tax savings you will receive from a compliant Cost Segregation accelerated depreciation building study.

This analysis is free, and if you decide to use Cost Segregation’s services, you will receive a 10% discount because of your relationship with Live Oak Bank.

All new commercial real estate building owners qualify for all new purchases and new commercial construction with a minimum cost basis of $300,000.

If you wish to see a free and no obligation estimate of your tax reform savings, contact Don Little at or call Don at 972-333-5059.