A 60,000 square foot distribution warehouse, placed in service 2019. LED lighting, modern rooftop HVAC, insulated metal panels. Completely ordinary building. The owner never claimed 179D because nobody told him it existed.
2019 puts him on the old rules: $1.80 a square foot at 50% savings against a 2007 reference standard.
60,000 x $1.80 = $108,000, landing on the current return through Form 3115 as one catch-up number. At the top bracket that is roughly $40,000 of federal tax, more with state.
And the same site visit can produce a cost segregation study on the 5, 7 and 15 year components that warehouse has been carrying at 39 years.
From The Tax Strategy Playbook, episode 30: 179D after the deadline.
Full episode at taxstrategyplaybook.com
Free analysis on any building you own, no obligation:
calendly.com/david-wiener/cs or 770-224-8504, option two
#179D #CostSegregation #CommercialRealEstate #TaxStrategy #Shorts