Ta x R e d u c t i o n s E x p e r t s
The IRS Guidelines
for Non-Load Bearing Walls
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IRS
S
INTERIOR NON-LOAD-BEARING WALLS AND COST SEGREGATION 01
Mostly 95% of the
interior partitions
and non-load bearing
walls are misclassified as short life property.
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02
03
The IRS has guidelines
Has your cost
as to when these assets
segregation specialist
personal property.
right advice?
may be considered
given you the
04
Have they set
you up for a fall?
TWO CRITERIA BY IRS
IRS The IRS comes up with two criteria
to consider it as short life. Here is the first criteria:
You must show that you are re-using and storing
the removed material for later use. The property owner can not be considering planning to re-use the walls, but must in fact actually be reusing the parts and storing them
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SECOND CRITERIA You must show that it is economically sensible to make this decision. Storage and removal costs should calculate as more economical than tearing out and building new.
CREDIT CARD
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TA K E AWAY ! Unless both of these criteria are met,
Trust Your Tax Reduction Strategies to
owners may not consider the interior
O’Connor . Our team of real estate
non-load-bearing walls as personal
advisors and commercial appraisers
property. They should be classified
work with youÂ
as long-life property and depreciated over 39 years. www.expertcostseg.com