topic Re: Section 179 in Deductions & credits

Section 179

Davejoseph84 — Tue, 26 May 2020 21:03:06 GMT

I work as a handyman have been looking for an option for a workshop area for me to store tools and do repairs. and priced out a shed and a "metal building" that is similar to an erector set. It can be disassembled and moved to other properties and is held to the ground with mobile home anchors. These buildings can be unbolted and moved from location to location, it is done very regularly with this company. They are installing it for me but if I ever move they will uninstall it and move it to the new location for me. Would this qualify under 179? Especially since it's cheaper than the shed? The shed was going to cost me $6,000, the"metal building" cost $5400.

Re: Section 179

Critter — Wed, 27 May 2020 00:55:27 GMT

I would call it a 7 year property as equipment and do not enter it as a "building".

Re: Section 179

Davejoseph84 — Thu, 28 May 2020 10:36:04 GMT

Thanks. What the reason I couldn't have it under 179? From the others posts I've looked at on here, people seem to be writing off their mobile buildings in one year

Re: Section 179

Carl — Thu, 28 May 2020 15:58:32 GMT

Generally speaking, "real estate" which consist of land and/or a structure on that land is not eligible for SEC179. But being that this is in essence a mobile workspace I would classify it as equipment that gets depreciated over 7 years, and that would probably qualify it for SEC179.

Re: Section 179

Anonymous — Thu, 28 May 2020 20:16:15 GMT

i would follow Carl but take 100% bonus rather than 179. the reason is that 179 is limited to the net income from the business before the 179 deduction. if the 179 produces a loss that loss is not allowed and the 179 becomes a carryover until next year. Bonus does not have similar limitations.

Re: Section 179

Davejoseph84 — Thu, 28 May 2020 22:26:17 GMT

Thank you guys so much. How would I take it as a bonus? I thought I could deduct 100% this year as long as I have enough income with 179. I'm not sure how you take it as a bonus