New Tax Rule Could Spell Depreciation for Commercial Improvements

John Deere Landscapes has pointed out a new provision in the 2003 tax law that could mean a new marketing tool for those selling to commercial clients.

"Commercial property owners and landlords who purchased their investment properties after May 5, 2003, can take a significant 52.5-percent depreciation allowance on all irrigation and landscape improvements this year," observes Michael McGrady, senior vice president at John Deere Landscapes. "This is a big incentive for owners and managers to upgrade their investment properties – and landscape professionals now have a powerful new sales tool."

The new allowance affects landscape improvements for apartment houses, commercial properties, factories, office buildings, industrial parks and other business facilities. Aside from landscaping and irrigation, other improvements covered include patios, fences, sidewalks, waterways, roads and canals.

McGrady urges contractors to encourage clients to discuss specific planned deductions with their tax advisors.