Tax Benefits of
Depreciation is an income tax deduction that allows a business to take an annual allowance for the wear and tear of a property, and this deduction is spread out over the useful life of an item as determined by the IRS (see IRS Depreciation Schedule below).
Traditionally, companies created private offices and conference rooms by constructing drywall. Because drywall is considered a permanent fixture of a building, they are depreciated like a building—over 39 years! This means significantly less depreciation deductions and therefore, higher taxes each year.
ALUR walls offers tax-saving alternative — demountable walls. Because our (floor-to-ceiling) walls are demountable, the IRS treats them as furniture. This means that companies can depreciate ALUR walls in seven years, allowing for greater depreciation deductions for a more efficient cost savings sooner than a traditional build-out.
For further guidance on taking advantage of tax benefits, be sure to consult your tax professionals.