Depreciation

[TAX]

Can some one please confirm following depreciation

(1) Gas Pump - - 5 years

(2) Canopy--20 years

(3) Gas Tank--20 years

Also, can I take Sec 179 for All three with possible exception of Canopy?

Thanks!

[TAX]

Can some one please confirm following depreciation

(1) Gas Pump - - 5 years

(2) Canopy--20 years

(3) Gas Tank--20 years

Also, can I take Sec 179 for All three with possible exception of Canopy?

Thanks!

Can any one confirm please

[Jesse]

It doesn't look as simple as a yes or no

Check out this link:

http://www.irs.gov/businesses/small/article/0,,id=141494,00.html

[dyne]

I could not find your items listed in a 1990 Depreciation Guide I use but it says anything
NOT listed should generally use a 7 year life.
I entered Depreciation of Gas Canopy, etc in Google and found the following:
Revenue Ruling 2003-54 says that a 5 or 9 year life can be used for canopies.
You may wish to READ the Rev Ruling to make sure it applies to your clients,
Gas tank is 7 years I believe. Gas pump probably 7 years. These are simply my
interpretations and you may wish to research further.

[Jesse]

From a 2006 depreciation book I have(so could be outdated?):

Buildings and land improvements used primarily in the marketing of petroleum and petroleum products are classified as 15 year property under Revenue Procedure 87-56. So traditional gasoline service station building(that is no convenience store attached), and related land improvements, including billboards and car washes, qualify as 15 year property.

There are tests to determine the "primarily used" qualification.

Gasoline pump canopies that are not attached to a building are Section 1245 property if they can be dismantled and removed with minimal damage and most of their components are reusable. If the canopies are section 1245 property, they have a five-year recovery under Revenue Procedure 87-56. In addition, a Section 179 deduction is available.

However, the supporting concrete footings are inherently permanent, and thus classified as land improvements with a 15 year recovery period - Rev Rul 2003-54.

[veritas]

Look at 57.0

My favorite classification

Distributive Trades and Services: Includes assets used in wholesale and retail trade, and personal and professional services. Includes section 1245 assets used in marketing petroleum and petroleum products.

Pumps are 5 years

Tanks are 5 years


As are most personal property used in retail.

[TAX]

My favorite classification

Distributive Trades and Services: Includes assets used in wholesale and retail trade, and personal and professional services. Includes section 1245 assets used in marketing petroleum and petroleum products.

Pumps are 5 years

Tanks are 5 years


As are most personal property used in retail.

Since these are not real property, I can take sec 179, right?

Thanks!

[veritas]

yes

they qualify for the 179 election