Reclassify Building Components With Cost Segregation To Increase Cash Flow

May 17, 2024

Could you be sitting on hundreds of thousands of real estate dollars that you didn’t know about? There’s gold in them hills – talk to ABGi (832-495-4555) about its cost segregation services to improve cash flow and reduce income tax.

Are you looking for ways to reduce your commercial property taxes? Are you paying too much? Have you considered cost segregation to reclassify your depreciation schedule for external components and improvements?

If you're a real estate investor or a CPA and you need a tax consultancy you can trust, reach out to ABGi – delivering cost segregation savings for over 30 years! More details at

Reduce Your Taxes

ABGi's cost segregation studies can reduce your tax liabilities and increase your cash flow. The firm helps to reclassify the components of and improvements made to commercial buildings to a shorter depreciable timeframe, reducing your income tax obligations in the process.

Non-Structural Elements

ABGi has the expertise to identify property assets - typically items that are affixed to your building but have little bearing on the operation and maintenance of the property as a whole – such as non-structural elements, exterior land improvements, and indirect construction costs. Portions of electrical, plumbing, and mechanical systems can also be allocated to shorter life classifications to free up more of your capital that would otherwise remain with the IRS.

Free Initial Review

Through a complimentary review of your building and its grounds, ABGi identifies potential savings which are then discussed with you and your appointed tax professional. If you wish to proceed, the complete study can be initiated and finished within four to six weeks. ABGi's report includes all necessary adjustments to the Depreciation Schedule and the requisite engineering review.

A spokesperson says, “ABGi creates a cost segregation study customized to each commercial property. If the property is depreciating on a conventional scale of 27.5 to 39 years, a cost segregation study can recategorize it to depreciate in 5, 7, or 15 years. By using this specific method, the study can provide information on exactly how much money could be saved on taxes.”

How Much Can I Save?

According to the Journal of Accounting, cost segregation can release around $16,000 in net-present-value savings for each $100,000 in assets that are reclassified from a 39 to a five-year recovery period. Imagine what you could do with that money?

Tax Code Adherence

ABGi's cost segregation study analyzes your property according to the US tax code guidelines and includes a detailed tax plan that will accelerate depreciation. Not only does this reduce your taxable income but also releases capital that can be reinvested into your business or put towards reducing principal building payments. Your cash flow may also increase by between 5 and 8% of the building's cost.

About ABGi

The firm has been providing tax consulting services for over 35 years, specializing in incentives for the Research and Development Tax Credit and Section 179D tax deductions along with cost segregation. ABGi operates across the world and has delivered over $1 billion in credits thus far.

Put your property tax in safe hands by working with ABGi!

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