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tigerdx
Level 2

Self employed buying a office shed, is it tax deductible?

Hello everyone, I was thinking buying a office shed for business, can i write it off in tax? Thanks

3 Replies
Mike9241
Level 15

Self employed buying a office shed, is it tax deductible?

yes it is. just a question of how?

I can't give a specific $ amount but if it is relatively inexpensive I would expense it. if not, then the question becomes is the shed a structure or a building?

If the shed is a structure that is not permanent in nature then you can use the 179 or bonus depreciation deduction for personal property to expense the entire cost the year acquired. 

If it's a building then it is real property depreciable over 39 years 

tigerdx
Level 2

Self employed buying a office shed, is it tax deductible?

Hello Mike, it is about 12x12 and the price is around 10k

Carl
Level 15

Self employed buying a office shed, is it tax deductible?

If it qualifies for a SEC179, then it's only worthwhile to expense it, if you actually have $10K of taxable business income to offset in the tax year you purchase it.

Most portable sheds, such as the one seen here at https://www.shedliquidators.com/products/10x12-Gable-Shed.html?keyword=&matchtype=&creative=31507156... may qualify to be expensed, or depreciated under SEC179.

But if you're looking at a $10K shed that sounds more like something that would become a permanent structure to me. The easy way to tell (at least in my county) is that if the shed increases your property taxes, then it's probably considered a permanent structure and would have to be depreciated over time.

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