2016 is a bonus tax relief year
This year, Congress is allowing businesses to depreciate up to $500,000 of tangible personal property before December 31st.
For example, if you buy a
for $20,000, you could write off the full amount and save up to $6,800 on your 2016 tax bill.
This bonus depreciation program is part of the government's efforts to encourage capital expenditure and stimulate the economy. It comes under Section 179 of the Internal Revenue Code.
Will 2017 be a bonus tax relief year?
Yes. But, you'd have to wait until the end of 2017 to claim your tax relief.
We don't yet know how much Congress will allow you to depreciate in 2017. It may stay at $500,000, but then again, it may change.
Can this apply to any building project?
No. It cannot be applied to conventional construction projects. They are classified as real property and have a 39-year depreciable life.
Starrco modular construction, which can be dismantled and put back together in a new location, qualifies as tangible personal property - that is property that can be moved.
Also, Starrco buildings are manufactured and get installed 75 percent faster than conventional construction, so even a tight December delivery deadline is doable but your
Starrco sales person
will check and confirm that for you.