In this guide we discuss important factors that affect HVAC depreciation life and everything you need to know about the depreciation life of a HVAC system.
When you own a business, being able to keep your employees and your customers comfortable day in and day out is an absolute necessity. This means investing in a wide range of products and appliances to create the perfect environment. However, the most important feature you can add will almost always be your climate control system.
A great HVAC system can help ensure that your business is always a comfortable space for everyone to be, no matter what the weather might be outside. However, as the years go on, having to maintain these systems can get quite expensive.
On the other hand, having to go without this control can be a serious disadvantage and leave business owners in a difficult position. However, a recent change in laws has given business owners the solution that they’ve been dreaming of.
According to 26 US Code, Section 179, rather than having to wait for these systems to depreciate over 39 years, business owners can now claim any and all components changed in their system can be deducted within the first year. This is absolutely incredible for business owners who have been trying to make their system work for as long as possible just to get that tax deduction at the end.
However, there are a few things that you should know before you call up your heating and cooling service. Here are a few factors that you should keep in mind when you start thinking about your HVAC depreciation life.
HVAC Depreciation Life
As a business owner, you’ve been looking at changing and replacing your HVAC system for quite some time now. The system you currently have is constantly failing, leaving your business in a particularly disadvantageous position and could even lead to you losing out on potential sales. The best course of action that you could take at this point would be to invest in a brand new, state of the art system. However, under the old laws, this would be rather difficult. This is because before, a business could only make a tax claim on these installations after they slowly depreciated over 39 years. This new change completely changes this fact.
Now, businesses are able to make a claim on their system within the first year of their installations. This means that if you spend 15,000 dollars on your brand new system, you’ll be able to make a claim for the full 15,000 right away as a business expense instead of only claiming a few hundred dollars every year for an extended period of time, and this will end up saving you tons of money in the long run.
How to Find the Best Solution for Your Business
Is this some of the best news you’ve heard in a while? Great, then it’s time to find a quality HVAC installation team that you can really trust to give you the best system for the best possible price. Of course, true professionals will take pride in what they do and will do everything in their power to help you find the best possible solution, including determining which system will give you the best return on your investment. However, finding these quality professionals can sometimes be more of a struggle than you’d expect.
First, you’ll need to find a reliable team that has years of experience working with and installing the commercial systems. The longer a business has been working in the industry, the more confidence you’ll be able to have in their skills and ability to get the job done quickly. Remember, your business is dependent on this system running perfectly, so you want to make sure that you’re working with the best of the best right from the very start.
The reputation of the service will also be incredibly important to consider. You want to feel secure that you’ve found a professional you can really trust with your business, so you’ll want to take the time to search through reviews and testimonials from past clients whom they’ve already worked with. That way, you can be sure that you’ve found a team that’s actually worth your time.
Make Sure It Qualifies
Another important factor that you’ll need to take into consideration when you start to consider this new investment will be that your new system actually qualifies for this new law change. The last thing you want to do is spend tens of thousands of dollars on a brand new HVAC only to find out that this new change doesn’t apply to this particular type of climate control system.
While your service provider should be able to easily find out this information for you, you could also call up your local representative and get a much more detailed explanation of what systems qualify and why. You need to make sure that you’re securing yourself and your business throughout this process before you lay out the money for a new system right away, no matter how tempting it might be.
Consider Other Expenses as Well
If you’ve had the same HVAC system in your business for decades, then you should also keep in mind that a wide range of other expenses might need to come into play when you decide to upgrade. New HVAC systems can be much more intricate and complicated, running off of newer automated computer systems that can make things much more efficient for you in the long run, but you may need to make some physical alterations to your space to make it work.
These construction alterations won’t be included in this particular law change, so while they can be considered a business expense, you’ll need to weigh the eventual payoff with what you’ll have to spend upfront to see if this is the best time for you to make this particular upgrade.
When it comes to getting your business to the top of all your competition, having a comfortable and peaceful environment can make a world of difference. Employees and customers alike enjoy being in a space where they feel at ease no matter how bad the weather can get outside.
This means the possibility of better sales and even better productivity from your staff. However, creating the perfect environment can come at a cost, as commercial HVAC systems are extremely expensive to install. However, this recent change in federal law has made this possibility much more likely for many business owners. Being able to claim this investment as a business expense completely within the first year means that you’ll be able to get a significant portion of your money back when you file your taxes.
This means that rather than having to wait 39 years while your system slowly depreciates, you can actually get a significant refund within the same year. For many business owners, this is all the incentive they’ll need to start thinking about upgrading their systems as soon as possible.
Why deal with malfunctions and faulty equipment when you can have the newest and the best systems installed today? Of course, there are certain considerations that you’ll need to keep in mind to ensure that you end up making the best decision as far as the HVAC depreciation life for your business is concerned. Keep all this information in mind, and find a solution that works for you today.
