Tax Planning
If you own the building, depreciation is a decision
The problem
Owned property is often placed on a single long depreciation schedule when a substantial portion of it legitimately belongs on much shorter lives.
Why it matters
Reclassification accelerates deductions into years when you are actually paying tax. It is one of the larger one-time planning items available to an owner who owns their facility.
How to know if you have this
- You own your building or a commercial property
- The property was purchased, built or renovated recently
- No study was performed at acquisition
- You expect strong taxable income in the next few years
How Advisory Motion solves it
- 01Screen the property for likely reclassification benefit before commissioning a study
- 02Model the deduction timing against your projected income by year
- 03Coordinate with entity structure and any planned sale
- 04Account for recapture in the exit scenario so the benefit is real, not borrowed
Illustrative example
A screening before a study
The preliminary estimate showed enough short-life property to justify the study several times over — and the timing was aligned with two high-income years.
Illustrative composite · not a client identification
Where this connects