Tax question about renovation of a building.

I've run into a few clinics that form another LLC and transfer ownership after the real estate is 100% depreciated. Seemed about as safe as buying a snake farm to me, so I'd run that one by a CPA.

Check and see if the disabled acess tax credit is still available and how it may help you, such as buying equipment vs including them in the build out, ie handicap rails, hi low tables, etc, look at everything closely , has a small max value, but is a credit vs deduction

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Get a cost segregation study done after the construction is complete. The cost seg will break down the depreciable assets into different classes. Result is more cost being allocated to asset classes with shorter lives. It's worth your while if you are spending enough on the additions.

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Consult a cost segregation specialist before starting construction. They will help you with picking some items that will qualify for shorter depreciation lives, but after the construction is complete, it's too late to make changes. I'm not an expert in this, but I believe some lighting choices would be an example of this.

Also, I know the IRS recently announced new regulations about repairs to expense vs. repairs to capitalize. I'm not sure if any of that will apply to your renovations.

I second (or is it third) the cost seg option. I've had clients do them before, however, you probably need to be spending north of 200K to make it worth while. Consult with them before you start and tell them what you are thinking, and they can give you an estimate of what the study will cost.