$3.9 Million Cash Benefit During Year One
New Construction of $25MM Multi-Family Community in Arizona
Building owners who engage in demolitions and renovations without considering partial dispositions of assets are making an expensive mistake.A typical long-term hold property owner has the opportunity to retire 30% or more of a building’s component costs over the life of the property. Why pay taxes on assets that don’t exist? By removing disposed building components, you reduce your tax basis by reducing the property’s book value.
Engineering Process
Building owners who engage in demolitions and renovations without considering partial dispositions of assets are making an expensive mistake.A typical long-term hold property owner has the opportunity to retire 30% or more of a building’s component costs over the life of the property. Why pay taxes on assets that don’t exist? By removing disposed building components, you reduce your tax basis by reducing the property’s book value.
Study Results
Reclassification of assets due to our study yielded $4.5 million of land improvement property with a fifteen-year life, and $4.75 million of personal property with a five-year life. The client satisfied the requirements for 100% bonus depreciation, which effectuated approximately $9.8 million in depreciation, and a $3.9 million dollar cash benefit in year one.