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.