topic Re: Metal Building deposit and purchase in Get your taxes done using TurboTax

Metal Building deposit and purchase

Tashie10 — Wed, 11 Feb 2026 08:17:05 GMT

Hello,

I purchased a metal building for my small business and paid a deposit in November 2023. The full price of the building was not paid until delivered in March 2024. How would I claim the deposit ($3000) for my 2023 taxes, or would I just claim the entire cost of the building in my 2024 taxes? The building is not in use yet and will be a separate structure on my residential property. In 2023, the business was more of a side hustle and will become more professional in 2024 (waiting on LLC paperwork). I appreciate any help or guidance. Thanks!

Re: Metal Building deposit and purchase

Vanessa A — Fri, 12 Apr 2024 15:23:34 GMT

You do not deduct the cost of a building. A building is a depreciable asset. So, when you start using it, you will start depreciating the building. You will include the $3,000 along with whatever more you paid this year as the purchase price part of the cost basis.

How to Depreciate Property.

Re: Metal Building deposit and purchase

stlcards2010 — Fri, 12 Apr 2024 15:28:20 GMT

You will most likely capitalize and depreciate the building (or '179'expense the building in 2024 when it is place in service