Depreciation schedules are a part of every "Balance Sheet" our accountant provides an owner. These schedules are very important as it pertains to the number of years that an expense is amortized. Obviously, the fewer the number of years, the more beneficial it is to the owner of a property. The Internal Revenue Service provides a schedule listing the number of years that must be used for certain types of capital expenditures.
In most cases, accountants will depreciate a construction project over a substantial number of years, typically thirty. At MPM, we will sit down with our client's accountant and provide him with the necessary information to depreciate specific equipment included in the construction project on an individual basis. This allows our clients to claim the expense over a shorter period of time, which in turn saves tax dollars.
Presently, construction services amount to approximately 50% of our overall business. By providing these services to our tenants in concert with property management, we can provide additional efficiencies and cost effectiveness as it pertains to bundling the various management services we provide.