Improve Tax Efficiency on Office Improvement Projects

 

Office expansion projects often involve long-term tax depreciation (15 or 39 years), and shorter-term office leases (7 or 10 years). This can cause a host of problems.

Luckily, there is a better way.

Lease payments are recorded on your income statement, which means they are tax-deductible operating expenses.
This can reduce your firm’s tax expenses far more than the depreciation expenses you would claim if you booked your new equipment
purchases as assets on your balance sheet.
 

Businesses across the U.S. are changing their strategy on tenant improvement (T.I.) projects.
Here is a comparison of a lease vs. a loan for $1,000,000 of T.I.:

Screen-Shot-2018-03-19-at-4-24-45-AM.png Screen-Shot-2018-03-19-at-4-24-52-AM.png


That’s $232,736 in tax savings over the next 7 years, with lower cash flows than you would experience with a loan.

First American provides lease-finance services for the entire spectrum of office buildout projects, including:
 

                                 
  • Furniture
  • Security Systems
  • IT Equipment

 

 

  • Lighting
  • Telecom Equipment
  • AV Equipment

 

 

  • Design Fees
  • Artwork
  • Construction Services

 

 

  • Leasehold Improvements
  • Movable Walls
  • Prepaid Maintenance & Technical Support

Let's Reimagine Your Workplace, Together.

 

First American can help you create the workplace you've always imagined.

Our solutions for office renovations and expansions are tailored to meet your business objectives—from
project simplification and budget consistency, to tax savings and accounting benefits.

Click on the resources below to learn more about our office buildout capabilities:

 
 
 

5 Ways to Transform Your Workplace

 

Practical Options for Your Buildout

 

Client Testimonial

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