End-of-Year Tax Savings on Commercial Flooring: Don't Miss the December 31st Deadline

For businesses, churches, and organizations across Massachusetts, the end of the year isn't just about setting budgets for next year—it's the critical time to maximize tax deductions for the current year.

If you've been delaying that necessary flooring renovation in your office, church, retail space, or facility, now is the time to act. Installing new commercial flooring with Mago Flooring before December 31st can qualify you for significant tax benefits under key provisions like Section 179 and Bonus Depreciation, turning a major capital expense into a powerful end-of-year tax reduction.

Here is Mago Flooring's guide to understanding how new commercial floors can save your organization money right now.

1. The Core Benefit: Section 179 Expensing

The most powerful tool for immediately deducting the cost of new commercial flooring is often Section 179 of the IRS Tax Code.

What is Section 179?

Section 179 allows businesses to deduct the full purchase price of qualifying equipment and software placed into service during the tax year, rather than depreciating it over many years. This drastically reduces your taxable income, sometimes dollar-for-dollar up to the total deduction limit.

Why Commercial Flooring Qualifies:

• Qualified Real Property (QRP): Commercial flooring is generally classified as a Qualified Improvement to non-residential real property. It qualifies for Section 179 deduction limits.

• The Incentive: Instead of depreciating your new LVT, durable carpet, or polished concrete over 39 years, you may be able to deduct the entire cost in the year it’s installed.

*Crucial Deadline: To claim the deduction for the current year, your new Mago Flooring system must be purchased and installed (placed into service) by December 31st.

2. Bonus Depreciation: An Alternative Strategy

If your project exceeds the maximum limits for Section 179, or if you prefer a different approach, Bonus Depreciation offers another major advantage.

• How it Works: Bonus Depreciation allows businesses to immediately deduct a large percentage of the cost of property placed in service during the year (often 80% or 100%, depending on the current tax law).

• The Power: When combined with Section 179, or used as a primary method, Bonus Depreciation offers flexibility in immediately reducing your tax liability for major capital improvements like a complete commercial flooring overhaul.

3. Why Act Before December 31st?

The financial incentives create a powerful urgency for your project:

• Cash Flow: A large tax deduction in the current year frees up cash flow sooner, allowing you to invest in other areas of your business or facility in the new year.

• Project Urgency: The installation must be complete by the end of the year. Given lead times for materials and scheduling complexities, planning your project now is critical to ensure installation wraps up before the deadline.

• Aesthetics & Functionality: You benefit from a fresh, professional, and safer environment immediately, while leveraging the maximum tax savings.

Mago Flooring: Your Partner in Commercial Upgrades

Whether you are a church replacing aging carpet, an office installing modern LVT, or a retail store needing durable polished concrete, Mago Flooring specializes in commercial projects across Massachusetts and neighboring states.

We understand the specific needs of our commercial clients and the importance of timely installation. Don't wait until the last minute!

Call Mago Flooring today to schedule your final-quarter consultation and ensure your commercial flooring upgrade is complete by the December 31st tax deadline!

Disclaimer:

Mago Flooring is a flooring service provider, not a tax advisor. Please consult with your CPA or tax professional to confirm your project’s eligibility for Section 179 or Bonus Depreciation under current IRS regulations.