There may be cash in those construction dumpsters. Under the final tangible property regulations issued in September, you can write off the remaining life of certain items that you removed or abandoned in place in a commercial building and get a tax deduction based on the remaining useful life of that item at the time it was disposed of or abandoned…..but don’t expect your accountants to go dumpster diving.
We are currently still in a “catch up” period. And if you want to go back in time on past parts removed you’ll have to do it prior to the end of tax year 2013 according to Jonathan Frizzell of Cost Segregation Services, Inc. (CSSI). CSSI has the engineering and accounting expertise to value the assets removed and provide proper documentation for your Tax Professional to include with your 2013 tax return.
If you have changed out a roof or renovated your building recently, and particularly if you have replaced and disposed of roofing, plumbing, electrical equipment, HVAC equipment, walls, doors, or partition, give Jonathan a call at 206-399-7769, to discuss and estimate your qualifying deductions. You may be eligible for a nice check from the IRS.