As a commercial property or business owner you have the opportunity to take advantage of Section 179D tax deduction options that can assist you in upgrading your existing property. This not only provides you with the lower cost of the actual upgrade through the deduction but it can also assist you in ensuring that your building is efficient with regards to energy use in the future, helping to reduce your cost of operation.
In addition, by taking advantage of Walker Reid Strategies Section 179D commercial building tax deduction options you can also boost the value of your building. This is critical if you are planning on selling in the future, want to attract investors or wish to have your building valuated to use as collateral or security if you are planning on an expansion of your business or holdings.
Will My Building Qualify?
There are several details in the Section 179D tax deduction standards that are used to qualify buildings for the deduction. The building has to be used for commercial or industrial uses but with industrial buildings the specific industrial process systems are not covered by the deduction.
Other types of buildings also qualify for a Section 179D tax deduction depending on their specific use. For example, single family homes do not quality but multi-family homes of at least 4 stories will qualify. In addition a building that has been converted to commercial use will qualify provided it is still used for commercial or industrial purposes. In addition attached or detached garages may quality based on specific standards.
What Buildings Will Not Qualify?
There are some buildings that may meet the standards listed above but still not be eligible for a Section 179D tax deduction. These are very specific situations and a professional company offering assistance in obtaining the deductions can advise a building owner as to the ability of the building to qualify.
As a general statement any building that is currently tax exempt, such as a religious structure, will not be eligible. In addition any multi-family buildings, including dormitories, condos and apartments that are fewer than four stories above grade will not qualify.
Also, any building uses an alternative energy source, meaning it does not use fossil fuels or electricity for heating and lighting, is not eligible for a Section 179D tax deduction.
