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Bonus Depreciation: You May Have More Capital Than You Think

Written by: Don Little Posted: 3/22/2017
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Congress has extended the 50% bonus depreciation on self storage new construction and/or additions to projects completed between 2008 - 2017.

In a typical self storage facility it is possible to accelerate 20% - 40% of the depreciating assets within a self storage business to a five- or 15-year tax life as opposed to the standard 39-year tax life. With this 50% bonus depreciation extension, there is the opportunity for additional cash flow provided the facilty underwent construction between 2008 - 2017 and opened the doors within that same timeframe.

For example, a $1,000,000 building would see $200,000 - $400,000 moved to 5 or 15 year tax life. If this facility was constructed or expanded in 2010 and opened in 2012, the property would qualify for an additional 50% bonus depreciation yielded in the first year in service. This would represent an immediate tax deduction of $100,000 - $200,000. 

Bonus depreciation tax deduction and accelerated tax life cash flow analyses are now available with the execution of an IRS-compliant, engineered-based building study and represents significant tax savings.

For more information, email Don Little DonLittle@CSSI-Associate.com for your free estimated tax savings report with the following information:

  • New construction/addition costs for projects completed in 2008-2016.
  • New construction costs for future projects to be completed in 2017.

It is your money sitting in the U.S. Treasury and our IRS-compliant study is the solution to putting it into your bank account for you to reinvest.

 

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