The Tax Advantages of Renovating Your Business Bathrooms Now

If your company is contemplating making building improvements in the near future, it might be better to think about doing it sooner rather than later. When your business needs interior upgrades, it's important to consider the impact these renovations can make for your clients, guests, and employees. Equally important is your timing. This is true whether your company is in hospitality, retail, restaurants, office buildings, or a small business.

Although you may be aware of the high return on investment for commercial restroom renovations, there are many other compelling reasons to consider one. These may include making them ADA compliant and code compliant, along with better efficiency and an updated appearance. Additionally, updating your bathrooms will reflect well on your building and your company, in addition to offering increased incentive to prospective buyers should you wish to sell in the future.

However, like most things, timing is crucial and there may never be a better time! Bonus depreciation is a powerful money saving tool for your business, but it is set to expire at the end of 2019. In fact, this tax strategy can help to offset the cost of your improvement with tax savings and help to defer some of your tax liability.

In simplified terms, any improvement that has been made to the interior portion of a nonresidential building after the building was originally placed in service is a qualified improvement property and is eligible for bonus depreciation, although there are a few exceptions.

This includes many items that may be necessary for your bathroom renovations including permanent floor coverings, lighting and electrical, plumbing, partitions, ventilation, doors, heating or cooling items and many others. Although there is not much time left in 2018, businesses will be able to deduct a bonus rate of 40%. However, in the 2019 tax year, businesses will still be able to deduct a bonus rate of 30%. Accelerating deductions can help your business free up money today.

Of course, it’s always wise to consult a tax and accounting professional to find out how bonus depreciation can benefit your company.

DECOLAV can help you achieve the business restrooms you want with our quality styling and expert engineering. Coupled with your unique vision, we can provide innovative solutions for your bathroom design, and DECOLAV offers an abundance of options that are sure to satisfy even the most discriminating taste.

If you would like more information about how DECOLAV can help you with ideas for your bathroom renovations, please visit