Show me the Money—ClearSpan Buildings Qualify for Tax Benefits

I may sound like a broken record by repeating how our Hercules Truss Arch Buildings will save you money, but I only say it because not only is it true, but there are many ways in which they do so. Aside from having a low cost per square foot, being energy efficient and reducing product loss and damage, I have yet to discuss another major cost-saving opportunity…Show me the money

Although we offer an industry-leading 15-year warranty on the fabric and frame of our buildings and encourage our customers to keep them forever, this is not always the case. Our buildings can be used permanently, but are classified as temporary.In for the long haul

In for the long haul
We love to hear of customers who purchased a building years ago and are still currently using it happily. Even more often we hear of companies purchasing our buildings with the intention of only using it for a specific project, but after the project is complete they find another use for it and end up keeping it. Regardless, when a customer purchases a Hercules Truss Arch Building with us with no intent to sell it or stop using it, they can still benefit monetarily. Because our structures can be considered temporary, and due to the Internal Revenue Code Section 179 Benefit, you will see an incredible tax savings with a ClearSpan Fabric Structure as compared to traditional wood or steel buildings. Below is an example of how ClearSpan Fabric Structures can save you money on taxes.

 

ClearSpan Fabric Structures

With Internal Revenue Code Section 179 Benefit

Conventional Structure

Cost of building

$100,000

$100,000

 

 

 

Depreciation allowed- first year

 

 

Depreciation life= 1 year

$100,000

Depreciation life= 39.5 years

$2,532

 

 

 

Tax savings—first yearAssume 35% tax bracket for federal and state income taxes

$35,000

$886

 

 

 

Net cost to buyer after tax benefit after first year

$65,000

$99,114

 

 

 

Additional savings to buyerReinvestment of tax savings over average hold period at 4% for 19 years: $34,114 x 4% x 19 years=

$25,935

$0.00

*Please note, these are general examples and we strongly recommend you consult with a professional tax adviser to determine your eligibility for any tax savings.

In for the long haulSome of our customers who locate their Hercules Truss Arch Building on their personal property may run into the dilemma where they have to move, but can’t take the structure with them. When this scenario occurs, depending on the structures’ application they have two options. Usually if the building is on a farm or used as an agricultural purpose it makes more sense to leave the building on the property to increase the property value for that type of market. Usually, especially if the building is used for storage or construction, our customers will resell the building.

Living in a disposable worldDisposable world
For those who only require their Hercules Truss Arch Structure for a temporary use, you’ll experience incredible tax savings as well because they’re depreciated at the same rate as a piece of equipment of vehicle, and not a building.

 

ClearSpan Fabric Structures

Single use, removable building

Conventional Structure

Cost of building

$250,000

$250,000

 

 

 

Depreciation allowed

 

 

7 year life

$35,714

39.5 year life

$6,329

 

 

 

Total depreciation after 7 years

$250,000

$44,303

 

 

 

Tax savings in first 7 yearsAssume 35% tax bracket for federal and state income taxes

$87,500

$15,506

 

 

 

Net cost to buyer after tax benefit after 7 years

$162,500

$234,494

 

 

 

Additional savings to buyerReinvestment of tax savings over average holding period at 4% for 16 years: $71,994 x 4% at 16 years=

$46,080

$0.00

*Please note, these are general examples and we strongly recommend you consult with a professional tax adviser to determine your eligibility for any tax savings.

Disposable worldDon’t let the tax depreciation rate scare you into thinking you’ll never make any money if you try to resell the building to another party, or even back to us. Typically, the price of purchasing any building increases every year with the rate of inflation and rising material costs. Although the price to purchase a new ClearSpan Fabric Structure may increase, the price you originally purchased it for does not and they retain their value over time. Many customers resell their Hercules Truss Arch Buildings from 80% to 100% of their original purchase price.

The list of reasons why and how ClearSpan’s Hercules Truss Arch Buildings save you money is endless. It is something to think about when making your purchasing decision. Not only will you experience wonderful features and benefits, but you’ll save more money than you would with a traditional wood or steel building.

Over the last several months we’ve discussed numerous ways our buildings save you money. Can you tell us any we haven’t mentioned that you’ve experienced?

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