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wkankovsky
Level 1

Supply chain issues

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

4 Replies
tagteam
Level 15

Supply chain issues

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-depreciati...

Carl
Level 15

Supply chain issues

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.

 

wkankovsky
Level 1

Supply chain issues

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?

Carl
Level 15

Supply chain issues

You are correct.

 

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