Disposal of a "Paving" asset on Depreciation Schedule

Stupidasur3 — Tue, 09 Mar 2021 19:35:38 GMT

I have a mobile home park that suffered damages during Hurricane Sally. The asphalt paving was damaged at the entrances to my park due to falling trees. These were huge trees. Post Hurricane, numerous equipment trucks, electric company trucks, bucket trucks, etc. did substantial damage to the paving at these entrances. I need to remove these assets from my books. Is this considered Sec 1245, 1250, or 1231 property?

Re: Disposal of a "Paving" asset on Depreciation Schedule

ColeenD3 — Tue, 09 Mar 2021 19:54:44 GMT

The asphalt paving is Section 1245 property.

Re: Disposal of a "Paving" asset on Depreciation Schedule

Stupidasur3 — Tue, 09 Mar 2021 20:32:09 GMT

Still confusing. How is this considered Personal Property?

Re: Disposal of a "Paving" asset on Depreciation Schedule

ToddL99 — Tue, 09 Mar 2021 23:38:30 GMT

Section 1245 property includes more than just "personal property" (see bold-faced items, below).

Section 1245 property defined.

Section 1245 property includes any property that is or has been subject to an allowance for depreciation or amortization and that is any of the following types of property.

Personal property (either tangible or intangible).
Other tangible property (except buildings and their structural components) used as any of the following. See Buildings and structural components below.
1. An integral part of manufacturing, production, or extraction, or of furnishing transportation, communications, electricity, gas, water, or sewage disposal services.
2. A research facility in any of the activities in (a).
3. A facility in any of the activities in (a) for the bulk storage of fungible commodities (discussed later).
Where applicable, that part of real property (not included in (2)) with an adjusted basis reduced by (but not limited to) the following.
1. Amortization of certified pollution control facilities.
2. The section 179 expense deduction.
3. Deduction for qualified clean-fuel vehicles and certain refueling property (as in effect before repeal by Public Law 113-295).
4. Deduction for capital costs incurred in complying with Environmental Protection Agency sulfur regulations.
5. Deduction for certain qualified refinery property.
6. Any applicable deduction for qualified energy efficient commercial building property. See section 179D.
7. Amortization of railroad grading and tunnel bores, if in effect before the repeal by the Revenue Reconciliation Act of 1990. (Repealed by Public Law 99-514, Tax Reform Act of 1986, section 242(a).)
8. Certain expenditures for child care facilities if in effect before repeal by the Omnibus Budget Reconciliation Act of 1990, Public Law 101-508, section 11801(a)(13) (except with regards to deductions made prior to November 5, 1990).
9. Expenditures to remove architectural and transportation barriers to the handicapped and elderly.
10. Deduction for qualified tertiary injectant expenses.
11. Certain reforestation expenditures.
12. Deduction for election to expense qualified advanced mine safety equipment property.
13. Any deduction for qualified film, television, or live theatrical productions allowed under IRC section 181.
Single purpose agricultural (livestock) or horticultural structures.
Storage facilities (except buildings and their structural components) used in distributing petroleum or any primary product of petroleum.
Any railroad grading or tunnel bore.

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Disposal of a "Paving" asset on Depreciation Schedule

Re: Disposal of a "Paving" asset on Depreciation Schedule

Re: Disposal of a "Paving" asset on Depreciation Schedule

Re: Disposal of a "Paving" asset on Depreciation Schedule