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Tax Write Off's- Help the kid.?
I'm in the real estate business and had a abnormally profitable year.
I also own and manage a strip mall where my Real Estate office is located.
I'm wanting to have a 30' x 30' shop built on some unusued space behind my office.. It would be for business use to store atv's, trailers, signs, and other tools that are used for my real estate business.
The barn/shop will cost approx $7,500.
I intend to pay cash for it.
Is there any way to write it off in full this year???
Bummer.. Thanks for confirming. I just despise our tax system. It is such a convoluted mess for self employed people like myself.
4 Answers
- BobbieLv 79 years ago
No.
www.irs.gov website use the search box for Publication 946, How to Depreciate Property.
http://www.irs.gov/publications/p946/index.html
Property Used in Your Business or Income-Producing Activity
To claim depreciation on property, you must use it in your business or income-producing activity. If you use property to produce income (investment use), the income must be taxable. You cannot depreciate property that you use solely for personal activities.
Partial business or investment use. If you use property for business or investment purposes and for personal purposes, you can deduct depreciation based only on the business or investment use. For example, you cannot deduct depreciation on a car used only for commuting, personal shopping trips, family vacations, driving children to and from school, or similar activities.
What Method Can You Use To Depreciate Your Property?
http://www.irs.gov/publications/p946/ch04.html
Introduction
http://www.irs.gov/publications/p946/ch04.html#d0e...
The Modified Accelerated Cost Recovery System (MACRS) is used to recover the basis of most business and investment property placed in service after 1986. MACRS consists of two depreciation systems, the General Depreciation System (GDS) and the Alternative Depreciation System (ADS). Generally, these systems provide different methods and recovery periods to use in figuring depreciation deductions.
To be sure you can use MACRS to figure depreciation for your property, see Which Method Can You Use To Depreciate Your Property in
chapter 1.
This chapter explains how to determine which MACRS depreciation system applies to your property. It also discusses other information you need to know before you can figure depreciation under MACRS. This information includes the property's recovery class, placed in service date, and basis, as well as the applicable recovery period, convention, and depreciation method. It explains how to use this information to figure your depreciation deduction and how to use a general asset account to depreciate a group of properties. Finally, it explains when and how to recapture MACRS depreciation.
Nonresidential real property 39 years
Hope that you find the above enclosed information useful. 12/23/2011
- 9 years ago
No chance. And since it's non-residential commercial property, you depreciate it on a 39 year straight-line schedule so you get a depreciation deduction of $192.30 per year. (The first and last year will be less.)
