Cost Segregation Services
Accelerate Depreciation & Generate Substantial Cash Flow
Cost Segregation is an application by which commercial property owners accelerate depreciation and reduce the amount of taxes owed. This savings generates substantial cash flow that owners often use to reinvest in business, purchase more property, apply to their principal payment or spend on themselves.
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How Does Cost Segregation Work?
ABIS works with experienced and qualified professionals to perform an engineering-based cost segregation study on your property. This engineering-based cost segregation study results in a much higher depreciation expense and significantly reduced taxable income for the property owner.
The study accelerates the depreciation of your building and renovation components into shorter depreciation categories such as 5-, 7-, and 15-year schedules rather than the conventional 27.5- and 39-year schedules.
Examples of Accelerated Items:
- 5- and 7-Year Items: Decorative building elements, specialty electrical for dedicated computer equipment and medical equipment, carpet, tile, etc.
- 15-Year Items: Site utilities, landscaping, and paving.
Does Your Property Qualify?
Best of all, tax code ruling states cost segregation can be applied to categories of buildings purchased or built since 1986, including renovations. And importantly, there is no need to amend your tax returns to capture these benefits.
American Business Incentive Services offers these along with other Federal and State Tax Incentives, leveraging our experience to know how to maximize each credit individually or collectively to legally, ethically, and morally maximize your recovery.