Section 179 (or Bonus Depreciation) for Equipment Purchased from Abroad

[ndc24075]

My company (a single-member LLC) plans to purchase some computer servers from a foreign company and ship them back to the US in 2023. I wonder if I can use Section 179 or Bonus Depreciation to deduct them in 2023. I was looking for exclusions for assets acquired from aboard but couldn't find clauses for my case. I know assets used outside of the US will not qualify but my case will have them shipped to the US. Thanks.

[Anonymous_]

@pk ?

[pk · Accepted solution]

@ndc24075 , as far as I know and as per 26 USC section 179 statute, there is no limitation as to where you get the machinery from for use  ( and take advantage of section 179 ) in your US entity.  Please note that while  section 179 allows the capital asset to be essentially de-assetized ( i.e. expensed  as if the life was 1 year ), the actual class life is still valid  and therefore  if disposed of before end-of class life, will require  depreciation  claw back.

I say above  i.e. get your asset from anywhere in the world  but it is subject to treasury rules  of sanctioned countries and entities.  So there is a limitation of   sourcing.

Does this make sense ?

pk

[ndc24075]

@pk Thanks very much for the clarification.