Few of us have a plan that stretches 39 years into the future. But there is one guy who does – Uncle Sam. The investments you make today can have profound consequences for your businesses’ tax liabilities for years to come.
Prolonged Tax Depreciation for Conventional Construction
If you invest in conventional construction in 2017, you won’t be making your final depreciation deduction until 2056.
That’s right. It will take you 39 years to depreciate your real property investment.
One Year Tax Depreciation for Modular Buildings
Unlike conventional construction, Starrco modular systems qualify as tangible property. Technically these should be depreciated over 7 years.
But under Section 179 of the tax code, you can depreciate 100% of certain capital expenditures in 2017. This part of the tax code can vary from year to year, so take advantage of this tax deduction and purchase your Starrco enclosure in 2017.
Businesses investing in tangible property such as a Starrco modular office, equipment enclosure, cleanroom or any other modular building can take advantage of this extraordinary tax depreciation this year.
2017’s Section 179 at a Glance
$500,000 Deduction Limit
If your Starrco building is purchased (or financed) and installed during 2017, you can depreciate its full value this year.
If you spent $20,000 on a Starrco building in May 2017, you could depreciate the entire cost on this year’s tax return.
You’ll still have $480,000 left to spend on other tangible property that will qualify for full depreciation in 2017.
$2,000,000 Spending Cap
If you purchase more than the $2,000,000 capital investing limit, the $500,000 Section 179 limit is reduced dollar for dollar by amounts spent over the investment limit.
50% Bonus Depreciation
A bonus depreciation you can apply to tangible property purchases if you exceed the spending cap.
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.
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.