Identify Non-Structural Building Components For Reduced Commercial Property Tax

Jul 1, 2024

Are you a CPA firm looking to score the best tax deductions for your clients? These cost segregation experts will reclassify building assets and increase your clients’ cash flow.

If you own a CPA firm, you already know that taxes can be complicated. However, you can make your clients’ taxes ‘disappear’ with a specialized property cost segregation study.

Call ABGi today for expert advice to shorten depreciation periods and save money on taxes.

The firm's team of experts in tax law and construction engineering is positioned to serve CPAs, real estate investors, and anybody who owns commercial property.

How Cost Segregation Aids Tax Deductions

New additions, asset disposals, and demolitions can provide significant tax benefits for commercial property owners. As such, ABGi offers engineering-based cost segregation studies tailored to each property, analyzing buildings within U.S. tax code guidelines to identify depreciable assets and potential tax credits.

Building structures are depreciated over a 39-year tax life in the US, but personal property assets can be depreciated over shorter periods of 5, 7, or 15 years. Cost segregation studies aim to identify and categorize personal property assets within your property to shorten depreciation periods, reducing current income tax obligations for property owners.

Personal Property Assets: Faster Depreciation

Personal property assets include non-structural elements and indirect construction costs such as:

  • land improvements (i.e., landscaping & parking lots)
  • commercial equipment or machinery
  • specialty plumbing & electrical systems
  • new construction 
  • renovation or remodeling

The ABGi Cost Segregation Process Outlined

  1. ABGi's cost segregation team will analyze your buildings and grounds to find savings opportunities. 
  2. They'll discuss potential savings with you.
  3. If you approve, they'll complete the study in 4-6 weeks. 
  4. Afterward, they'll provide a report outlining the necessary adjustments to your Depreciation Schedule, the 481(a) adjustment, and an Engineering report.

Your CPA firm can team up with ABGi to ensure IRS compliance and identify all eligible components for deductions. ABGi highlights several benefits for your clients after cost segregation, such as reduced taxable income, increased cash flow, and business growth from reinvested tax savings.

ABGi employs professional engineers, lawyers, tax specialists, and strategy experts in the US and internationally. In addition to cost segregation, you can consult the firm for other specialized tax incentives like the Research & Development tax credit and Section 179D deduction.

A spokesperson for the company says, "Even if a cost segregation study has been done in the past, it is our experience that things are not always correctly accounted for. Our team of attorneys and engineers will provide you the highest level of service while adding value back into your company."

Looking to enhance your tax strategy and maximize deductions? Cost segregation is the key!

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