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Tax Benefits of Choosing Starrco

While there are many reasons to choose modular over conventional construction, did you know that investing in a Starrco modular building can provide a substantial tax advantage you just cannot get with stick-built projects?

Starrco Qualifies as Tangible Personal Property

Starrco Tax AdvantageUnder the tax law, Starrco modular systems qualify as tangible personal property. That means you can depreciate a Starrco modular building in the same way as other capital equipment such as forklifts, rack and machinery.

Starrco modular systems qualify because, unlike conventional buildings (designated as real property), our modular buildings and office systems can be fully dismantled, relocated and reassembled.

Generally, tangible property is depreciated over 7 years. That is a great deal considering conventional construction is depreciated over 39 years.

But, it gets even better:

As part of the Tax Cuts and Jobs Act recently signed into law, Congress has extended the bonus depreciation and increased it to 100% for 2018.

The program is designed to stimulate the economy and encourage investment in capital goods. When you reduce the amount of time it takes to claim tax depreciation on equipment expenditures, you have more money to reinvest into your business’ future success. Getting access to that money gives you options. One such option for that new-found money could be to build a larger Starrco structure to accommodate future expansion.

NOTE: Conventional construction must be depreciated over 39 years and does not qualify for this program. Speak to your tax advisor to find out how the bonus depreciation can be applied to your particular situation.


How Does the Bonus Depreciation Benefit Starrco Buyers?

If you spent $20,000 on a Starrco modular office system, you should be able to expense the entire cost this year.

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 can be applied to your company’s tax situation.

Page updated: January 2018