Removable & De-mountable Drywall Tape® is a patented demountable and reusable drywall partition technology. For taxpaying investors and owners of commercial buildings or residential rental property seeking to reduce near-term tax liabilities and increase cash flow while contributing to a more sustainable environment, our tape® offers significant financial and environmental benefits. It is a game changer for investors in commercial buildings and residential rental properties.
The “System” is created when the patented system drywall is installed in place of regular drywall tape. THAT’S IT!
Created by W. Frank Little, a former Gensler & Associates architect, as a viable “green” alternative to discarding used gypsum wall partitions in landfills, Removable & De-mountable Drywall Tape® technology also has emerged as an effective way to increase cash flow by reducing near-term tax liabilities. Drywall partitions installed with Removable & De-mountable Drywall technology can be easily demounted and reused. As a result, demountable drywall partitions installed on non-load bearing walls may be classified as tangible personal property. The shorter-life classification results in accelerated depreciation and increased cash flow through a reduction in near-term liabilities.
A requirement for shorter life asset classification, Mr. Little invented a carbon-fiber joint tape with precise horizontal and vertical threads that control the amount of joint compound applied in the mudding process. The unique characteristics of Removable & De-mountable Drywall Tape™ make possible the demounting process. In a 2008 video audit conducted by the IRS, our tape™ was the only joint tape among more than 20 brands that performed to IRS specifications. Thus, Mr. Little has created the only demountable and reusable drywall partition technology that can be classified as tangible personal property for depreciation purposes.
IRS Private Letter ruling says “because the drywall is removable, everything associated with the drywall becomes 5-year depreciable Private Property. Also, this makes all non-load bearing walls part of a system that can be removed, recycled, or transported to another location vs. end up in the landfill.This system includes interior doors, windows, plumbing, decorative glass, cabinets, molding, plumbing, & electrical drywall etc. It is applied almost exactly the same as regular tape but has two fewer process steps and can be painted over faster than regular drywall. Removable & De-mountable Drywall Tape has its own adhesive and is UL approval for fire resistance and no need to let the mud dry before moving on.
When it is time to remodel, the process is much easier and cost effective. You will not have to shut down the air-conditioning system, work at night or make noise, it cuts down on overtime and reduces injuries. During remodeling, you can work on moving the walls without any noise on the same floors. We go onsite and educate the GC and contractor on the installation of our tape for each project.
What does this mean in real numbers, a Fortune 50 company in Houston built an 88-story building for $49 million and because of Removable & De-mountable Drywall tape $15 million is depreciated over the next 5-years and they shaved $3 million over the next 4-quarters Corporate Estimated Taxes.
What is the typical benefit of this amazing construction technique, approximately $8-$30 per linear foot in benefit, averaging $15 p/ft. Typically $10-$50 ROI.
For smaller properties, we recently added our tape to a 6,000 SF surgical building resulting in $18.44 per SF in additional benefit.
We get involved early in the process and work with the architects, builders, designers, and owners to share simple ways to further increase the “tax friendly” of the building.