chat now with southern tool
Technical Sales 1–800–458–3687

Inplant Modular Offices

Please call for pricing on your specific needs

Click here to download quotation request form

Click here to download quotation request form

Click here to download brochure

Why Modular - What are Modular Offices?

A modular office is a building that is constructed to serve as an office or other enclosure, but is not connected to a permanent foundation on the ground. These offices are often used as spaces, but can also be used as overflow areas or even permanent work areas, depending on the need. Typically, they cost less to buy and build than more traditional office buildings. Modular offices can also refer to temporary walls and structures within a more traditional building.

Modular construction is simpley a construction type that is based on standardized dimensions or units. As such, construction can be accomplished more quickly. This is opposed to more traditional construction which usually takes place on site and is more complex in nature. Though some may not believe the aesthetics of a modular office are comparable with a traditional office, they both accomplish the same goal with similar structral integrity.

A modular office can be both portable and permanent, or at least semi-permanent. Portable modular offices are often seen at construction sites and other locations where temporary events are taking palce. More permanent modular offices can be put nearly anywhere, and even constructed in such a saw that they attach to permanent structures. The modular office building may include electrical and plumbing hookups for restrooms and even small kitches.

The current tax laws allow very favorable depreciation on all modular office products. These products qualify for a 7 year depreciation period while convention construction is depreciated over 39 years. Conventional construction, by its nature, becomes a permanent structural addition to a building, and thus it is classified as a real property with the longer 39 year depreciable life.

Understanding the 2017 Tax Advantage on an In-Plant Modular Office, Building or Enclosure

The current tax laws allow very favorable depresication on InPLant Offices product line, Modular Offices, Portable Buildings, Equipment Enclosures, and Elevated Work Platforms. Modular products qualify for a one year depreciation period in 2017 under Section 170 of the tax code, up to $500,000, while conventional construction is depreciated over 39 years.

Standard building construction is an immovable and permanent part of your real estate. Its known as conventional construction and is classified as real property with a 39 year tax depreciation

InPlant modular building products are non permanently installed, portable and movable. Their modular flexibility allows for expansion, reconfiguration or relocating. This mobility under the Modified Accelerated Cost Recover System (MACRS), allows your InPlant products to be classified as tangible property with a shorter depreciable life.

EXAMPLE: Assume you purchase a new office with a cost of $40,000 purchased and put into service before December 31, 2017. At the end of one year, your InPLant Modular building System will be fully depreciated, reducing your taxable income bu the original cost of $40,000. Conversely, conventional construction would be depreciated by only 2.5 percent, reducing your taxable income by only $1,025. Therefore, by selecting the InPlant modular Building System, you gain an additional $38,975 tax deducton in the first year.

Construction Method Investment Depreciation First Year Deduction Amount Estimated Tax Rate 2017 Tax Savings
InPlant Office Modular Product $40,000 $40,000 34 percent $13,600
Conventional Construction $40,000 $1,025 34 percent $348.50

Assuming a 34 percent tax rate, the difference of your tax savings invested $13,600 one deposit or $348 yearly contribution, and 5 percent for the remaining 38 years would approximately return $86,842 verses only $41,597.

Sample Pricing (prices are for example only, actual price will variy depending upon customer needs.)

  • An 8ft X 8ft guard shack cost would be $9,865.  
  • A 10ft X 20ft interior office building with a door, 2 windows, standard electric, standard lights and a window unit would be $7,630

modular vs stick built

Please call for pricing on your specific needs

Click here to download quotation request form

Copyright © 2019 Smith-Hamilton, Inc
0.002 171226 11:22