We’re all looking for ways to reduce our taxes, and metal buildings can help. In Part 1 of this article, we looked at overall benefits. In Part 2, we’ll keep the focus on actual opportunities to reduce taxes.
Adding a permanent structure to your property often increases property value.
Increase Your Property Value
Metal buildings used for business or as a residence are permanent structures that you add to your property. Permanent structures can raise your property value. Your tax advisor can give you specific details, but this is generally known as a capital improvement. The tax advantage isn’t instant. It helps you save on taxes when you sell your property at a future date.
Repairs don’t count. According to the IRS, your capital improvement must last for more than a year, add value, or adapt it to new uses. The IRS has prepared this PDF to help with understanding capital improvements done to your home.
Upgrade Your Building to Help Pay for It
One of the most popular ways to get tax breaks that can help you pay for a Miracle Truss® building is to upgrade it with green energy alternatives that offer financing options. The largest of these programs is known as PACE, which stands for Property Assessed Clean Energy.
This allows business and residential property owners to make payments as voluntary property tax assessment payments. The reduction in payments might actually be covered by the energy savings you enjoy by adding the green energy alternatives to your Miracle Truss® building.
What’s more, financing through a PACE program may make the interest on your loan tax deductible if you do borrow to pay for the building. Use this PACE program finder to see what’s available in your area.
The tax breaks you have available are determined by where you live or where your business is located. Not only does it vary by state, it can be different by city. It’s also possible that your local legislators have already passed building requirements that make it necessary for you to consider building with highly recyclable materials like steel.
You can keep up on the latest information by visiting this online resource. Our government maintains it to help you understand energy efficient products, and how to build energy-efficient homes or businesses. The website offers a tab that lists current federal tax credits.
We’re metal and steel building experts, not tax advisors – so our recommendation is that you first study the advantages of Miracle Truss® designs, and then meet with a tax expert to discuss the advantages our DIY approach to new buildings can offer. We’ll send free information to help you get started.