should be eligible to be classified as Section 1245--personal property, and depreciated over a 5 year period. thus it's eligible for section 179. however, you may want to consider 168(k) bonus depreciation instead. under certain situations, your 179 can be limited by business income not so for 168(k). should you dispose of the shed before the end of the 6th year, (the number of years you would take depreciation if you did not take 179), then you are supposed to recapture the 179 (because business use now drops below 50%), recompute depreciation using regular MACRs, and then take a loss on any remaining basis. this doesn't happen with 168(k)
