Are You Missing Your 179D Tax Deduction Claim?

by | Sep 11, 2014 | Financial Services

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Many commercial buildings today would have been able to take advantage of the 179D tax deduction claim but, for many different reasons, the owners and leaseholders of these buildings are be missing out on this very valuable tax deduction opportunity.

The biggest reasons that this claim is not being processed is because commercial building owners are often unaware of the program or, if they know about it, are misinformed as to the actual effort involved in making the application. To get a better understanding of the actual program and the process let?s break it down step by step.

Unfamiliar with the Program

As a commercial building owner or leaseholder it is highly unlikely that you spend a lot of time reviewing the Internal Revenue Code or keeping track of Acts that are passed into law. Most commercial property owners depend on their accountants or consultants to do that for them.

While some accountants and consultants may be aware of the program they may be confusing it with the other energy efficiency programs that can be very cost and labor intensive to actually implement. The 179D tax deduction claim is basically a very simple process for the commercial property owner or leaseholder as the documentation and certification must be done, by IRS regulations, through an approved third party.

Work Involved

The amount of work involved for a commercial property owner for the 179D tax deduction claim will depend entirely on the company you select to prepare the models, reports and certification. Some companies allow the property owner or leaseholder to choose their level of involvement, which is always a great option to build in flexibility and limit your actual commitment.

You will, of course, always be presented with the information that the professional engineering team puts together and any questions or concerns can be addressed. You will then simply sign off on the application and it will be submitted on your behalf.

Since the engineering company will do an advanced audit on your building you will know if your building will qualify and for what total deduction. This will allow you to determine if it is in your best interest to proceed with the retrofit or upgrades to gain further deductions or simply submit the documentation based on current energy efficiency and savings.? For more information visit online ?

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