January
Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
TurboTax has you covered during Covid. Get the latest stimulus info here.
cancel
Showing results for 
Search instead for 
Did you mean: 
kyndon16
New Member

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?

 
9 Replies
Critter
Level 15

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?

January

TaxGuyBill
Level 9

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?

Depending on exactly what "modular building" means, it might NOT qualify for section 179.
kyndon16
New Member

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?

It’s a steel bolt together building.
TaxGuyBill
Level 9

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?

Is it more like a shed, or more like a full building with a foundation, electricity, etc.?
kyndon16
New Member

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?

More like a shed but does have electricity
TaxGuyBill
Level 9

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?

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).
kyndon16
New Member

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?

It is moveable. So just to clarify it the depreciation would be used for January correct?
TaxGuyBill
Level 9

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?

Yes, January.
kyndon16
New Member

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?

Thank you very much for your help. Really appreciate it.
Dynamic AdsDynamic Ads
v
Privacy Settings