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Achieve Major Tax Savings with Cost Segregation

 

Invested Over $500,000 in Commercial or Rental Property in the Last 10 Years? A Cost Segregation Study Could Significantly Optimize Your Savings!

 

Understanding Cost Segregation

Cost Segregation is a strategic tax planning technique that enables businesses and individuals involved in real estate construction, purchase, expansion, or renovation to boost cash flow. This is achieved by speeding up depreciation deductions and postponing federal and state income taxes.

 

How Does a Cost Segregation Study Work?

When acquiring property, it encompasses not just the building but also all its interior and exterior elements. Typically, 20% to 40% of these components qualify for quicker tax write-offs compared to the main structure. A Cost Segregation study breaks down the construction cost or purchase price, which would normally be depreciated over 27.5 or 39 years. The key objective of this study is to pinpoint all costs related to the property that can be depreciated over 5, 7, and 15 years.

 

Why Clients Choose Us

With over 35 years of expertise, our team at ABGi has delivered hundreds of millions in benefits through Cost Segregation and other specialized tax incentives. Below is a sample of our esteemed clients. Contact us if you’d like to view the full list. 

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Navigating Tax Benefits – Client Experiences for 30+ Years

Sample Projects/Case Studies

Should You be thinking about Cost Segregation?

If any of the situations below apply, contact ABGi to learn what opportunities exist to use a Cost Segregation study to lower your tax bill.

  • I recently purchased a commercial building
  • I recently renovated a commercial building
  • I am planning to acquire a commercial building via 1031 exchange
  • I recently purchased or acquired a residence I will use as a rental
  • I recently constructed a commercial building
  • I recently added on to my commercial building

 

What are the Benefits of Cost Segregation?

Many business owners are amazed by the significant tax savings a Cost Segregation study can offer. Here are three key benefits:

  • Cash Flow: Generates an immediate increase in cash flow through accelerated depreciation tax deductions.
  • Write Off: Quantifies major property components and leasehold improvements, allowing them to be written off when replaced or renovated.
  • Review: Provides an independent third-party analysis that stands up to IRS review.