Here’s why you can accelerate tax depreciation with demountable office walls.
A major benefit of selecting demountable walls for office build outs is that under IRS Section 179 rules demountable walls qualify for accelerated tax depreciation. As described in IRS publication 946 “How to Depreciate Property” demountable walls fall under asset class 00.11: office furniture, fixtures and equipment. This classification includes furniture and fixtures that are not a structural component of a building (emphasis ours). This is in sharp contrast to drywall construction that is considered a structural component.
The difference is substantial, and clearly provides a financial incentive for building owners, building managers, and company facility managers to select demountable walls for new or remodeled office floor plans. Using the IRS general depreciation system (GDS) under the modified accelerated cost recovery system (MACRS) ALUR demountable glass walls and modular dividing wall systems qualify for a 7-year depreciation schedule vs. 39 years for drywall construction.
Other Business and Financial Incentives for Demountable Walls
In addition to accelerated tax depreciation, there are indirect financial incentives to install demountable walls in new or refurbished office space.
Flexibility is an important consideration because movable wall systems can be reconfigured faster and at far less cost to accommodate changes in office layouts or when changes are made to office floor plan to accommodate growth and other office needs.
Modern, attractive glass wall workspaces, conferences and break rooms provide an open, airy atmosphere that helps companies attract highly qualified staff in competitive recruiting environments and reduce costs associated with employee turnover.
The sound management properties of ALUR floor to ceiling glass walls and modular dividing walls contribute to increased employee productivity by addressing the noise distraction and privacy concerns associated with conventional open office floor plans. We invite you to read our post on collaboration and socialization.
When properly configured to allow maximum light penetration into and throughout offices glass wall systems help lower energy costs by reducing the need for artificial lighting. As a side benefit they also contribute to LEED points.
Studies show that exposure to natural light in the workplace increases health, reduces stress while contributing to employees’ sense of well being and contentment, thereby helping companies reduce staff absenteeism costs.
A Clear Case for Cost Savings
ALUR demountable glass and dividing walls are the smart solution to satisfy the many needs of today’s fast-paced and fast-changing business environment. As we point out in this post these systems allow companies to enjoy rapid depreciation advantages compared with conventional drywall construction. And the cost-savings benefits continue throughout the life of the system in terms of accommodating office reconfigurations, attracting and retaining personnel, increased productivity, lower energy costs, reduced absenteeism, and providing a welcome atmosphere to attract new clients.