Abandonment allows for the write-off of discarded lighting when it is not identified as a separate asset on the books of the property.

What is Abandonment?

Typically, lighting is included in the total value of a property and is not individually identified. When you remove old lighting fixtures, the assets are abandoned and can be taken off a company’s books. Abandonment involves calculating the book value of the discarded lighting, so that it may be written off as a tax deduction.

Why Can We Do This?

Recent changes to tax regulations allow disposal of individual building components where previously the IRS viewed a building as a single ‘unit of property’ (UOP). The new regulations allow disposal of a smaller UOP provided a detailed cost segregation report has properly broken down individualized UOP within the larger unit. These UOPs include lighting systems.

The Benefits are Guaranteed.

Once Awaken’s Tax Professionals are able to verify the accuracy of the product specifications and age of the lighting being removed, they will GUARANTEE their Projected Tax Benefit, backed by a Lloyds of London insurance policy.


Let Us Prepare an Abandonment Study.

An Abandonment study will identify the value of the assets being discarded, and provide all of the documentation required for your corporate tax return. Additional information needed would be the date the lighting was installed, the date of service, or the date of purchase for new construction. 

What Assets Qualify?

Lighting being discarded may qualify for Abandonment if it was never segregated in the books of the property. If the books reflect just the large asset, such as “Building”, the value of the lighting is included in the value of the building, and is depreciated with the property over 27.5 or 39 years. Determining the undepreciated value of the lighting allows for its write-off when discarded.