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Modular-Office VS. Stick Built

CONSTRUCTION DEPRECIATION

On our request National's accounting firm Grant Thorton® rendered an opinion of the wall systems with regards to depreciation and its classification. In general, by definition (which has remained consistent over the years), the product is considered equipment and depreciates accordingly. Thus allowing a company to completely write off the expenditure over 5 times faster than typical construction.

How does this advantage effect the cost?

With current tax laws, the bottom line is that conventional construction's initial cost would need to be over 32% less to match the tax advantages of National product. The following breakdown illustrates this and lists the assumptions.

Assumptions

*As a foot note, many situations can cause other rulings to apply, Grant Thorton ® does recommend companies discuss the matter with their CPA's to determine if their particular situation would qualify for this depreciation

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