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Qualifying property for 50% special depreciation allowance

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    Qualifying property for 50% special depreciation allowance

    Page 9-9 of The Tax Book states:MACRS property with a recovery period of 20 years or less qualifies for this allowance.

    Question: Client is in the cement laying business. He constructed and owns a Pole Barn on his own land to keep his equipment protected. The Pole Barn cost $35,500.

    Would this property be eligible for this special allowance?

    #2
    Great question, but has this been brought up before???

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    You might be thinking that since the "storage facility" is a pole barn (Farm Building, other than a single purpose building) is usually 20 years recovery under MACRS.

    Keep in mind, IRS say metal storage buildings have a 39 year recovery period under MACRS and this barn will not be used in an agricultural activity so I am thinking...39 years. If used in an agricultural activity, I would say 20 years or less (if single use).

    No bonus and no Sec 179, but that's my opinion. But, what if this pole barn qualifies as a "canopy or awning"? Hmmm.....but maybe not because, the canopy of awning "Does not include permanent canopies that are an integral part of a building’s structural shell, such as porte-cochere (covered entrances for vehicle drive-up) and porticos (covered porches), or over docks"...from an IRS Cost Segregation Study.

    I think you might be stuck with 39 years, no Bonus and no Section 179; non-residential building or structure. That's just me.
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      #3
      I agree with DaveinTexas. It is 39 years and no Special Depreciation Allowance.

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        #4
        Qualifying property for 50% special depreciation allowance

        Thanks to both of you for your input.

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