After-Tax Cash-Flow & Acquisition Desk · Cost Segregation & STR/REPS · ADRE #SA713873000
Cost Segregation, Accelerated MACRS & STR/REPS Tax-Shield Analyzer
Advisor Takeaway (Stephen R. Mannenbach, ADRE #SA713873000): Quantify Year-1 engineered cost segregation paper losses across 5-year, 7-year, and 15-year MACRS buckets while modeling the 100-hour Short-Term Rental (STR) material participation rule and 750-hour Real Estate Professional Status (REPS) tax shield across Scottsdale, Paradise Valley, and Greater Phoenix acquisitions.
After-Tax Cash-Flow & DSCR Underwriting Verdict · DealDaddy AI
Year-1 Tax Shield & DSCR Non-Cash Add-Back
Total Year-1 Paper Depreciation
$211,404
vs. $30,727/yr straight-line
Est. Year-1 Cash Tax Shield
$78,219
Offsets 32.9% of initial down payment
Net After-Tax Cash Left in Deal
$159,281
After Year-1 tax refund / withholding reduction
Qualifying DSCR (Depr. Added Back)
1.38x DSCR
Zero DSCR penalty from Schedule E paper loss
MACRS Component Breakdown & Underwriting Treatment
| Asset Class | Allocated Basis | DSCR Underwriting Rule |
|---|---|---|
| 5/7/15-Yr Short-Life Pool | $236,600 | 100% Added Back (Non-Cash) |
| 27.5-Yr Building Structure | $608,400 | 100% Added Back (Line 18) |
| Non-Depreciable Land | $190,000 | Included in Appraised LTV |
Arranged by Loan Daddy LLC · ADRE #SA713873000 · (480) 485-1229 · Consult your CPA/tax advisor.
Structure Cost-Seg DSCR Financing →