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In our ongoing series to help business owners optimize their tax strategies, we previously covered the Disabled Access Credit. Today, we’re delving into another valuable tax benefit that can make a significant impact on your bottom line—deductions for removing architectural and transportation barriers.
The Strategy: Special Tax Deduction for Barrier Removal
Beyond the Disabled Access Credit, your business can take advantage of a special tax deduction for certain costs associated with removing architectural and transportation barriers. This deduction allows you to write off up to $15,000 of expenses related to making your business more accessible for disabled individuals and the elderly. Importantly, this deduction is in addition to the Disabled Access Credit, though it cannot be used for the same expenses.
What Costs Qualify?
To benefit from this deduction, the barrier removal must meet the standards set by the Architectural and Transportation Barriers Compliance Board under the Americans with Disabilities Act (ADA). Qualifying expenses include:
- Accessible Parking: Creating accessible parking spaces, ramps, and curb cuts.
- Accessible Facilities: Installing phones, water fountains, and restrooms that are wheelchair accessible.
- Signage: Placing clear signage and symbols indicating accessibility.
- Widened Walkways: Expanding walkways to at least 48 inches wide.
Exclusions to Keep in Mind
It’s important to note that this deduction is not available for:
- New construction projects
- Full renovations of facilities
- Public transportation vehicles
- Routine replacement of depreciable property
How to Claim the Deduction
The deduction should be claimed on your tax return for the year in which the expenses are paid or incurred. To ensure you’re covered, keep meticulous records of all related expenses. If you miss the deduction on your initial return, you have six months to file an amended return to claim it.
Final Tip
Once claimed, deductions are irrevocable, so make sure to carefully consider and document your claims. This opportunity can provide significant savings while also enhancing your business’s accessibility.
By leveraging this deduction, you not only contribute to a more inclusive environment but also benefit from valuable tax savings. For more insights on how to make the most of tax benefits for your business, stay tuned to IRSProb.com.
