Metal Building deposit and purchase

[Tashie10]

Hello, 

I purchased a metal building for my small business and paid a deposit in November 2023.  The full price of the building was not paid until delivered in March 2024.  How would I claim the deposit ($3000) for my 2023 taxes, or would I just claim the entire cost of the building in my 2024 taxes?  The building is not in use yet and will be a separate structure on my residential property.  In 2023, the business was more of a side hustle and will become more professional in 2024 (waiting on LLC paperwork).  I appreciate any help or guidance.  Thanks!   

[Vanessa A]

You do not deduct the cost of a building.  A building is a depreciable asset.  So, when you start using it, you will start depreciating the building. You will include the $3,000 along with whatever more you paid this year as the purchase price part of the cost basis. 

How to Depreciate Property. 

[stlcards2010]

You will most likely capitalize and depreciate the building (or '179'expense the building in 2024 when it is place in service