| When you undertake demolition or renovate a building and tear out old lighting, HVAC units and other building parts, these assets are abandoned. As such, their book value can be treated as a business deduction. The tangible personal property within the structure (or a part of it), allows for the remaining depreciable value to be written off, when the building is demolished, provided that the personal property is to be abandoned, was not purchased with the intent to demolish, and is identified and valued prior to demolition.
Important: consider these tax strategies before any demolition and/or renovation is completed or you may lose this opportunity.
When you re-light a building you create both an opportunity for the Energy Tax Deductions and the Abandonment Study. Excess lighting (eliminated with the new energy-efficient system) can be depreciated faster than the typical 39 years, and so you maximize your tax strategies and save money.
Contact us for a COMPLIMENTARY initial feasibility analysis |
