It is not often that changes in the tax code give you something to celebrate. But, if you are planning a construction project for 2018, Starrco can help you put a big smile on your CFO’s face.
The recent tax reform package, the Tax Cuts and Jobs Act, offers businesses the extraordinary opportunity to depreciate the full cost of any Starrco modular building installed this year.
Being able to depreciate the entire cost of a building in the first year is an amazing tax break. Without bonus depreciation, it would take seven years to depreciate a Starrco building.”
– John Gilmore, CFO, Starrco
Companies that take advantage of the 100% bonus depreciation will essentially get more for their money because they can expense the whole project in the first year. Saving money on taxes means more dollars in your construction budget.
What could a bigger budget mean for your project?
- A chance to build enough space now to meet your future needs.
- Additional features and amenities such as tall walls, a storage mezzanine or bigger windows.
- A structural upgrade so you can easily and inexpensively add a second floor when you need more space.
Why do Starrco Modular Buildings Qualify for Bonus Depreciation?
Starrco modular buildings can be dismantled and moved which means they qualify as tangible property under the tax code. That is the same tax category as other capital equipment such as forklifts, racks and machinery.
Conventional construction does not qualify for bonus depreciation. In terms of the tax code, stick-built structures qualify as real property and must be depreciated over 39 years.
When you opt for a pre-engineered Starrco building you can depreciate it all this year and you are up and running faster and with a lot less mess and hassle than any conventionally built project.”
– Steve Schmidt, National Sales Manager, Starrco
This is for information only and should not be considered tax advice. For detailed information, look up Section 179 of the tax code and consult a tax professional to find out how this tax bonus may apply to your company’s tax situation.