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Returning Member
posted Jul 12, 2019 10:32:15 PM

category of storage shed used for business

Hello. I have a new shed structure (detached and in the backyard) and will use it 100% as storage for business (to keep business records that supposed to be kept for 7 years). It cost $5000. Under what category as an asset can I use the depreciation of the shed? Thank you

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1 Replies
Level 15
Jul 17, 2019 5:25:55 PM

Since the shed is a separate structure and is "in fact" a structure, it's classified as business real estate and gets depreciated over 40 years. Now I'm not sure, but I think because of it's low cost it may qualify for either a SEC 179 deduction and/or the Special Depreciation Allowance. If it does qualify for either the program will tell you. So if it does qualify ***AND*** you have the *taxable* business income to cover it, I would recommend you take it.