ETS determined and identified the unit of property cost basis for the improvements which were removed and destroyed for federal income tax purpose. Disposition studies serve as an opportunistic method to realize significant deductions that may otherwise have been overlooked. Such studies should be considered when commercial property is set to undergo a major renovation or demolition.   To learn more or if you would like a complimentary consultation, please contact us at 561-253-6640 or email us here.

Location Un-depreciated Amount
Chopin, LA – Manufacturing Facility $208,222.46
Oakdale, LA – Manufacturing Facility $276, 063.61
Total Building Cost $484, 286.07
The purpose of this study was to identify and assign value to the building improvements for lighting that have been removed and replaced to enhance energy efficiency, maintain savings, and improve the quality of the lights. The retired assets were identified, valued, and discounted for the depreciation taken.


When you undertake demolition or renovate a building and tear out old lighting, HVAC units, and other building parts, these assets are disposed of. As such, their book value can be treated as a business deduction. Tangible personal property within a structure can be written off when a building is demolished or remodeled.  The value must have been identified prior to the demolition and it must not have been purchased with the intent to demolish. Learn more about the disposition studies here or visit our disposition calculator here.