10x12 storage building

[Black Bart]

Gettin' shut of shed in first year.

Never mind--I looked it up and to qualify "single purpose agricultural or horticultural structures" for S-179 requires a Clintonesque definition. Storage doesn't count--"agricultural" means "raising" livestock in it, keeping equipment in it, and/or having working space in it.

My FIL raises a garden, so he's "horticultural" instead. Problem is this quote: "A single purpose horticultural structure is either of the following (1) A greenhouse specifically designed, constructed, and used for the commercial production of plants. (2) A structure specifically designed, constructed, and used for the commercial production of mushrooms."

Two apparent possibilities:
(1) Forget outside gardening. Sell tiller (worth $500). Buy 2nd storage shed for homeless junk--put it on garden plot. Tear roof off first shed--replace with clear plastic--now a greenhouse. Keep raising turnips inside storage shed. Problem: it's a big shed, but not that big. Scale: same size as one-room homes you Yanks build on top of ice skatin' rinks up there (Lordy--and I thought we were "bad off' for housing down here), but without the latrine in living room.

(2) Forget outside gardening. Sell tiller. Buy 2nd storage shed for homeless junk--put it on garden plot. Leave roof on first shed--grow mushrooms in dark. If not practical, buy 1000 cans (50 cents each)--forget second shed--cultivate taste for mushrooms and "Days of Our Lives"--begin drinking heavily.

Tax planning for relatives is a tricky business nowadays, isn't it? Let's see--$800 shed--15% fed bracket--5% state--that's...umm...$120 tax saved using--what was it?--oh yeah, S-179.

Now; how to tell him?

[MPlaks]

In the heat of the battle, we seemingly forgot the initial question.

If it's real property, it's 39 years. Otherwise, it's personal property and qualifies for 179. Size and cost do not matter. Whether it's permanently attached to the ground does. Case history clearly supports treating movable structures (such as sheds) as personal property.

[TMI Moderator]

ATTENTION:

Our goal is to allow the most unrestricted discussion and debate possible. However, we will not tolerate name-calling or other forms of personal attack.

Keep a lid on it folks.

[Mark Goldberg]

shed

If we are talking about a 10x12 shed purchased at Sears or Home Depot I would think this is 1245 property.

[Safire]

Wow, thanks everyone.

I would have to ask if he permanently attached the building to the ground. Oops, I meant to say shed.

My guess is no, he just graduated college and is still living with parents, but has plans to buy land and move in the somewhat near future. I would assume he will want to take this building with him.

We are talking about a 10x12 building that he paid $1700.00 for to store his small landscaping equipment in. I understand really that the size of it does not matter, but I have trouble thinking that the IRS would want $1700.00 spread out over 39 years. ( At least considering all the recent changes that have been made to depreciation laws geared toward helping the small businessman. )

I just want to do what's best for him, legally. That's why I asked for advice here and thanks to you all, I got it.