Supply chain issues

Forum|Forum|4 years ago
October 18, 2021
4 replies
23 views

If equipment is purchased and paid for in 2021, but is not delivered until 2022, in which year can a 179 deduction be taken?

Not A Product Question

Anonymous_

Level 15

The property must be placed in service in order to deduct the expense.

See https://www.irs.gov/newsroom/irs-issues-guidance-on-section-179-expenses-and-section-168g-depreciation-under-tax-cuts-and-jobs-act

Carl

Level 11

Equipment used in the production of income is not claimed until the tax year it is placed in service. It does not matter what tax year it was purchased or paid for either.

wkankovskyAuthor

Level 2

So, to be sure I understand, if my laptop gets delivered in December of 2021, but I don’t start using it in my business until January 2022, then I will claim the expense for tax year 2022. However, if I start using it in my business before the end of December, then I will be claiming it in tax year 2021?