The IRS Guidelines for Non-Load Bearing Walls

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