topic We built a modular building that was completed in Dec but was not placed into service until Jan. Can we still use Section 179? Which yr would we claim it? Dec or Jan? in Deductions & credits

We built a modular building that was completed in Dec but was not placed into service until Jan. Can we still use Section 179? Which yr would we claim it? Dec or Jan?

kyndon16 — Thu, 06 Jun 2019 14:10:55 GMT

January

Critter — Thu, 06 Jun 2019 14:10:56 GMT

January

Depending on exactly what "modular building" means, it mi...

TaxGuyBill — Thu, 06 Jun 2019 14:10:58 GMT

Depending on exactly what "modular building" means, it might NOT qualify for section 179.

It’s a steel bolt together building.

kyndon16 — Thu, 06 Jun 2019 14:10:58 GMT

It’s a steel bolt together building.

Is it more like a shed, or more like a full building with...

TaxGuyBill — Thu, 06 Jun 2019 14:11:00 GMT

Is it more like a shed, or more like a full building with a foundation, electricity, etc.?

More like a shed but does have electricity

kyndon16 — Thu, 06 Jun 2019 14:11:02 GMT

More like a shed but does have electricity

Sheds can be a gray area, but from what I can tell, if it...

TaxGuyBill — Thu, 06 Jun 2019 14:11:03 GMT

Sheds can be a gray area, but from what I can tell, if it has a foundation (and is therefore attached to the land, rather than being movable), it is considered as "Real Property". If that is the case, it is usually depreciated over 39 years and does NOT qualify for Section 179.

If it is movable (not attached to the land), the it is "Personal Property", which is often depreciated over 7 years, and DOES qualify for Section 179 (or better yet, the 100% Bonus Depreciation that is available).

It is moveable. So just to clarify it the depreciation wo...

kyndon16 — Thu, 06 Jun 2019 14:11:05 GMT

It is moveable. So just to clarify it the depreciation would be used for January correct?

Yes, January.

TaxGuyBill — Thu, 06 Jun 2019 14:11:05 GMT

Yes, January.

Thank you very much for your help. Really appreciate it.

kyndon16 — Thu, 06 Jun 2019 14:11:06 GMT

Thank you very much for your help. Really appreciate it.