Division 10 Doesn’t Own the Tax Break

Division 10 Doesn’t Own the Tax Break: What Architects Need to Know About Demountable Glass Specs

When it comes to demountable glass partitions and doors, there’s a persistent misconception in the construction industry:

“To qualify for a tax deduction, you must specify the system under Division 10.”

However, that’s simply not true.

At Avanti Systems USA, we hear this often, and we’re here to set the record straight.

Understanding the Real Tax Rule

Under Section 179 of the Internal Revenue Service (IRS) tax code, certain building components, such as demountable glass partitions, are eligible for accelerated depreciation. This allows building owners to deduct the full cost in the first year, or over seven years, instead of the typical 39 years required for permanent fixtures.

The key takeaway:

In fact, eligibility for these deductions depends on how the product is installed and used, not which division it falls under in your specification documents.

What the IRS Actually Looks At

To qualify for accelerated depreciation, interior glass partitions must meet specific criteria. These include:

  • They are not permanent and can be removed
  • They are non-load-bearing
  • They can be installed and removed quickly and at low cost
  • Their removal does not damage the building
  • They are installed after the base building construction
  • They are specific to tenant needs
  • They are classified as personal property, not part of the structural building

In short, these characteristics—not MasterFormat divisions—are what matter to the IRS.

Clarifying the Misconception

According to William Harbeson, Director of Energy Incentives at Capstan Tax Strategies:

“The IRS determines eligibility based on the product’s characteristics and installation, not its specification division.”

Therefore, you can specify glass partitions under Division 8 (Openings) and still maintain full tax deduction eligibility, as long as the product meets the outlined criteria.

Why Division 8 Makes Sense

Many Avanti Systems USA products naturally fall under Division 8, which covers doors, windows, and openings. These systems are engineered for architectural glass professionals—not furniture vendors—and benefit from specialized installation.

For example, products such as:

These systems are best installed by professional glaziers and align perfectly with Division 8 specifications.

Risks of Defaulting to Division 10

On the other hand, specifying under Division 10 often hands installation over to furniture dealers or general vendors who may not have the expertise to properly install complex glass systems. This can lead to:

  • Misaligned components
  • Acoustic failure (missed STC targets)
  • Costly delays and rework
  • Reduced durability or lifespan

Better Design, Same Tax Benefits

You don’t have to choose between tax savings and proper design intent.

Instead, with systems specified under Division 8, you get:

  • Access to accelerated depreciation
  • Greater control over installation quality
  • Consistency with glazing contractor expertise

Integration with existing architectural elements

The Takeaway for Architects and Specifiers

When selecting glass wall systems for your next project, don’t let myths around tax deductions dictate your decision.

Rather, focus on:

  • System design and performance
  • Who is best qualified to install it
  • Long-term flexibility for your clients

Ultimately, you’ll get the tax benefits either way, as long as the system is removable, non-structural, and designed for tenant-specific needs.

Need Help Navigating the Right Specification?

Avanti’s team of specification consultants can help you determine the best-fit systems for your next project, along with product documentation, performance specs, and code guidance.

To summarize, you don’t need to sacrifice design quality to meet IRS requirements.

To book your consultation call and ensure your specs are optimized for both quality and tax advantage, click here or call us. 
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