Tax Benefits of Modular Building
Take advantage of this great new opportunity! Section 179 has been extended for 2012 and 2013 tax years. You can even retroactively file for 2012; qualifying Panel Built purchases made in 2012 for processing under the higher deduction limits. This is a profitable offer on all Panel Built modular offices, portable buildings and mezzanines. These products qualify for a 5-year depreciation period, while conventional construction is depreciated over 39 years.
Conventional constructions become a permanent structural addition to a building, and thus are classified as “real property” with a 39-year depreciable life.
Panel Built products, on the other hand, can be fully dismantled, relocated, and reassembled. This mobility, under the Modified Accelerated Cost Recovery System (MACRS), allows our products to be classified as “tangible property” with a shorter 5-year depreciable life.
2013 Deduction Limit = $500,000 2013 Limit on Capital Purchases = $2,000,000 2013 Bonus Depreciation = 50%
· Section 179 Deduction are available for the majority of Panel Built’s products
Bonus Depreciation can be taken on new equipment only (no used equipment, no software)
Essentially, Section 179 tax code allows businesses to deduct the full purchase price of qualifying Panel Built products purchased during the tax year. That means that if you buy qualifying Panel Built products, you can deduct the FULL PURCHASE PRICE from your gross income. It’s an incentive created by the U.S. government to encourage businesses to buy equipment and invest in their own improvement.