Monday, April 11, 2016

Modular Pipe Systems are Tax Deductible (USA)

Tax Season is Here.  


Some people are happy about it...









...and some aren't.








So in the spirit of tax season, we thought we'd let you know about a little known tax deduction:

MODULAR ALUMINUM PIPE






Unlike most other compressed air piping systems, modular compressed air pipe is tax deductible.  Most pipe is considered part of the building, while the modular pipe is considered capital equipment.  That is because they're easier to take down and move.  I would argue that you could also take down the traditional piping (galvanized, black, copper, stainless-steel, ect), and move them.  However, it would be a much more difficult task.

Yes, modular piping costs more initially, but as discussed earlier, it is easier to install, is easier to add expansions, is corrosion resistant, and it doesn't add contaminants to the system.  It has all those benefits, and it's tax deductible.

How much do you get back?  Well that's complicated - the IRS has a whole website dedicated to tax deductions for capital equipment:  www.section179.org.  You'll have to get that answer from them or your accountant.  Happy Tax Season!

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