Office Expansion and Renovation Projects

Complete Project Financing

Improving your office space can open the door to incredible new efficiencies within your firm. It can also be the source of significant expense. A leasing program with First American may be the advantageous alternative you seek. From tax savings benefits to project simplification, First American has adept experience in financing office renovations. We can provide customized solutions - from the straightforward purchase of computers and furniture to the complicated design and construction process of multifaceted, multi-location build-out projects.

 

Success Story: Perkins Eastman


 


Improve Tax Efficiency
 


Distribute Costs Overtime
 


Prevent Phantom Income
 
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Improve tax efficiency on office improvement projects.

Office expansion projects often involve long-term tax depreciation (15 or 39 years) and shorter-term office leases (7 or 10 years). This can cause a host of problems. Luckily, there is a better way. Businesses across the U.S. are changing their strategy on tenant improvement projects. 

Distribute costs over time.


Why shoulder 100% of the costs today when the tax benefits will be realized over time? A lease can help balance your cash flow while minimizing your tax expenses. Acquire the equipment you need for your office expansion project without a large cash outlay.  Additionally, First American can finance all collateral involved - including installation and construction costs.

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Prevent Phantom Income.

If depreciation exceeds amortization, then taxable income is larger than book income. With traditional financing, the tax depreciation of office improvements is typically less than the book amortization (i.e. cash expense). This scenario creates a higher taxable income, which means that partners will be taxed on an amount that is higher than the amount made available by the firm for partnership distributions. First American's leasing structures eliminate this phantom income drag.

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