The IRS Guidelines for Non-Load Bearing Walls

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T a x R e d u c t i o n s E x p e r t s
IRS
The IRS Guidelines for Non-Load Bearing Walls
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INTERIOR NON-LOAD-BEARING WALLS AND COST
SEGREGATION
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Mostly 95 of the interior partitions and
non-load bearing walls are misclassified as
short life property.
The IRS has guidelines as to when these assets
may be considered personal property.
Has your cost segregation specialist given you
the right advice?
Have they set you up for a fall?
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TWO CRITERIA BY IRS
IRS
The IRS comes up with two criteria to consider it
as short life. Here is the first criteria
You must show that you are re-using and storing
the removed material for later use. The property
owner can not be considering planning to re-use
the walls, but must in fact actually be reusing
the parts and storing them
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SECOND CRITERIA
You must show that it is economically sensible to
make this decision. Storage and removal costs
should calculate as more economical than tearing
out and building new.
CREDIT CARD
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TAKE AWAY
!
Unless both of these criteria are met, owners
may not consider the interior non-load-bearing
walls as personal property. They should be
classified as long-life property and depreciated
over 39 years.
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. Our team of real estate advisors and
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