BUSINESS TIP –––––––––––––––––––––––––––––––––––––––––––––––––––––– MAPEI Flexcolor 3D™ is a professional-grade, ready-to- use (RTU) translucent specialty grout with an “irides- cent effect” finish. It is offered in 10 designer colors with translucent characteris- tics that not only reflect but also refract light. This allows the grout to transition in color to comple- ment the tile color. MAPEI Flexcolor 3D can be used in commercial and resi- dential installations of porcelain, ceramic, glass and natural-stone tiles. MAPEI Flexcolor 3D has been formulated with the latest innovation in recycled glass-bead aggregate, which ensures color consistency, ease of cleanability and improved workability. MAPEI Flexcolor 3D’s dense surface structure helps to prevent water- based stains on the grout surface. www.mapei.com property may qualify as personal property if they serve more of a business function than a structural purpose. Examples include rein- forced flooring to support heavy manufacturing equipment, electri- cal or plumbing installations, and dedicated cooling systems for serv- er rooms. A study in action Let’s say you acquired a non- residential commercial building for $5 million on January 1. If the entire purchase price is allocated to 39-year real property, you’re enti- tled to claim $123,050 (2.461% of $5 million) in depreciation deduc- tions the first year. A cost segregation study may reveal that you can allocate $1 million in costs to five-year prop- erty eligible for accelerated depre- ciation. Reallocating the purchase price increases your first-year depre- ciation deductions to $298,440 ($4 million × 2.461%, plus $1 million × 20%). Impact of tax law changes Bear in mind that tax law changes may occur this year that could sig- nificantly affect current depreciation and expensing rules. This in turn could alter the outcome and impor- tance of a cost segregation study. On the other hand, any forthcom- ing tax law changes likely won’t affect your ability to claim deduc- tions you may have missed in previ- ous tax years. 32 TileLetter | July 2017