Tax Advantages of Modular & Portable Building

Why are many offices and establishments now investing on modular and portable buildings? Today’s modular buildings are far better than the portable classrooms and construction trailers. It is the top quality, flexibility, and low cost modular office solutions that are gaining huge popularity.

Aside from modular office solutions, these prefabricated buildings can also be used as permanent housing, retail space, or municipal/city facilities. There are lots of benefits to using a portable building, and it also comes with tax advantages.

If you are familiar with tax laws, you probably know by now that the tax laws on modular buildings/construction are better. There is a provision which was enacted wherein those who choose to put up modular office solutions can benefit from the IRS Section 179. If your purchase of modular offices does not exceed two million dollars, you can have the building expensed to as high as $500,000.00 for 2010 to 2011 tax years. This is according to the tax bill of 2010, and it is designed to help business in expanding, spending, and in creating more jobs.

Through tax deductions, you can recover the investment on modular office solutions. This is good news to everyone who is planning to obtain a modular and portable building for their office space or establishment.

It is the bonus depreciation that is usually availed by business owners. This is because Section 179 will only benefit companies with higher income. You can check with your tax professional about the proper computations, so you can avoid potential surprises in the future.

Modular buildings are considered as equipment, and will depreciate over time. You can take advantage of the encouraging depreciation tax laws. Such products can fall under the 7-year depreciation whereas in traditional buildings, it is 39 years. This is because portable buildings can be dismantled just in case the company or business decides to relocate. Reassembly is also quite easy, so you will have a new office in a new environment.

The good things about modular office solutions outweigh its disadvantages. Aside from taking advantage of the tax laws, you can also enjoy fast and easy construction of the building, the material waste is decreased, there is less disruption, and the site logistics are simplified.

The engineering approach used in modular and portable buildings is not as complicated as you think. In fact, today’s technical innovation and lean methods on manufacturing prefabricated buildings have provided the market with durable and quality products.

Instead of waiting for 39 years, you can now save taxes through the 7-year depreciation. This is made possible through the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. Thanks to this bonus depreciation on the first year, you can easily recover. If you purchased the modular offices through the business, you are sure to recover within a year and you can put the money to more important things.

Now that you know the tax advantages offered by the government for modular and portable buildings, don’t you think it is time to make an investment!

Author Bio:

This post is written by Starrco, Starrco’s modular office solutions are manufactured to precisely fit each unique application and install in a fraction of the time of conventional construction.

Tags: Business, Modular, Modular building, Portable building, Prefabricated building

Category: Business