O'Connor & Associates
As much as 95% of interior partitions and non-load-bearing walls are misclassified as short-life property. The Internal Revenue Service (IRS) has guidelines as to when these assets may be considered personal property. Has your cost segregation provider given you the right advice? Have they set you up for a fall? Partitions or other non-load-bearing walls must meet the two criteria set forth by the Internal Revenue Service to be considered short-life: you must show that you are re-using and storing the removed material for later use. The property owner can not be considering planning to re-use the walls; you must show that it is economically sensible to make this decision. Storage and removal costs should calculate as more economical than tearing out and building new.