If you are a business owner or a property manager, you may be aware of the IRS's Section 179 tax deduction. This can be a great way to save money on certain purchases, such walls. Knowing how to take advantage of this tax deduction is essential for businesses looking to reduce costs. Let’s take a closer look at what demountable walls are, how they qualify for Section 179, and how you can use them in your business.
What Are Demountable Walls?
Demountable walls are flexible, movable partitions that have become increasingly popular in commercial and office spaces. They are typically made up of panels mounted on aluminum frames which can be easily constructed and re-configured depending on the needs of the space. They offer versatility without sacrificing aesthetics since they come in many colors and textures. Demountable walls also provide soundproofing capabilities which make them an attractive option for businesses who want to separate their workspaces while still maintaining privacy.
How Do Demountable Walls Qualify For Section 179?
The IRS's Section 179 allows businesses to deduct up to $1 million dollars worth of equipment purchases from their taxes in one year. This includes materials such as furniture, fixtures, computers, machinery and more—including demountable walls! As long as the item is used solely for business purposes and placed into service before December 31st of the same year it was purchased, it qualifies for the deduction. This means that businesses who purchase demountable walls can receive a significant tax break when filing their taxes at the end of the year.
Demountable walls for office build outs can be written off on taxes more quickly. This is because under IRS rules, demountable walls are considered office furniture, fixtures, and equipment. This is different from drywall construction, which is considered a structural component of a building.
This difference is significant and 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).
How To Calculate Tax Savings
If you use the IRS general depreciation system (GDS) under the modified accelerated cost recovery system (MACRS), NxtWall demountable glass walls and modular dividing wall systems can be depreciated over 7 years instead of 39 years for drywall construction.
You can estimate your tax savings using our calculator here.
The Benefits of Demountable Glass Walls NxtWall's demountable glass walls offer a range of advantages that make them one of the most popular choices for businesses around the world. The sleek, modern design is sure to impress clients and employees alike, and since these walls are easily disassembled and moved, they're great for businesses that need to frequently change up their office layout. Additionally, these walls are incredibly durable and require very little maintenance—making them ideal for areas with high foot traffic or frequent use.
A Clear Case for Savings
There are many benefits to using demountable glass and dividing walls in the office, including tax savings. These systems allow companies to take advantage of rapid depreciation compared with conventional drywall construction. In addition, they provide ongoing cost savings 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.
Contact us today for free space planning and an estimate for NxtWall products!