Applicable purchases of $ 500,000 dollars can now be written off during the tax year they are
purchased and put to use. In contrast, conventional building methods, or “stick built”
construction techniques must be depreciated over the course of 39.5 years.
A highly reputable 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 affect 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 Panel Built’s product. The following
breakdown illustrates this and lists the assumptions.