Section 179D Deduction

[Happyguy1]

My client has reported to me that he has a Section 179D deduction to be used at his commercial business site. He has installed electrical energy conservation equipment. The installation was completed by a utility company. Has anyone used this deduction? and how do I report it on his year 2013 tax return? (He is a sole proprietor.) Any advice would be appreciated.

Thank you in advance.

Happyguy1

[Jiggers]

What is a Section 179D Deduction?

I know what Section 179 is.

[DaveO]

26 U.S. Code § 179D - Energy efficient commercial buildings deduction


(a) In general
There shall be allowed as a deduction an amount equal to the cost of energy efficient commercial building property placed in service during the taxable year.

(b) Maximum amount of deduction
The deduction under subsection (a) with respect to any building for any taxable year shall not exceed the excess (if any) of—

(1)the product of—
(A)$1.80, and

(B)the square footage of the building, over

(2)the aggregate amount of the deductions under subsection (a) with respect to the building for all prior taxable years.

(c) Definitions
For purposes of this section—

(1) Energy efficient commercial building property
The term “energy efficient commercial building property” means property—

(A)with respect to which depreciation (or amortization in lieu of depreciation) is allowable,

(B)which is installed on or in any building which is—
(i)located in the United States, and

(ii)within the scope of Standard 90.1–2001,

(C)which is installed as part of—
(i)the interior lighting systems,

(ii)the heating, cooling, ventilation, and hot water systems, or

(iii)the building envelope, and

(D)which is certified in accordance with subsection (d)(6) as being installed as part of a plan designed to reduce the total annual energy and power costs with respect to the interior lighting systems, heating, cooling, ventilation, and hot water systems of the building by 50 percent or more in comparison to a reference building which meets the minimum requirements of Standard 90.1–2001 using methods of calculation under subsection (d)(2).

[Happyguy1]

Section 179D Deduction

My client has reported to me that he has a Section 179D deduction to be used at his commercial business site. He has installed electrical energy conservation equipment. The installation was completed by a utility company. Has anyone used this deduction? and how do I report it on his year 2013 tax return? (He is a sole proprietor.) Any advice would be appreciated.

Thank you in advance.

Happyguy1

Thank you for responding. I was hoping that someone had used this deduction for one or two of their clients and could advise on how to report (i.e. form #, etc.) on the tax return. My search of my software menu doesn't seem to take me to a form that I recognize to use for recording the information that would trigger the deduction. I am meeting with the client tomorrow and it would be good to have a handle on this issue. Again, I appreciate any advice.

Happyguy1

[Gene V]

Do a google search, this is from one google search

How should a taxpayer claim the section 179D deduction relating to energy efficient commercial buildings?

There is no special form to claim the deduction. The IRS instructions to business forms (e.g., Form 1120 for corporations, Form 1120-S for S corporations, and Form 1065 for partnerships) indicate that the taxpayer should include the amount of the deduction in the amount in the "Other deductions" line of the tax return. A statement listing the types and amounts of "other deductions" should be attached to the return. In addition, it is important that a taxpayer obtain and retain the necessary certifications and documentation to claim the deduction (see, IRS Notice 2006-52 for these

[Happyguy1]

Section 179D Deduction

Do a google search, this is from one google search

How should a taxpayer claim the section 179D deduction relating to energy efficient commercial buildings?

There is no special form to claim the deduction. The IRS instructions to business forms (e.g., Form 1120 for corporations, Form 1120-S for S corporations, and Form 1065 for partnerships) indicate that the taxpayer should include the amount of the deduction in the amount in the "Other deductions" line of the tax return. A statement listing the types and amounts of "other deductions" should be attached to the return. In addition, it is important that a taxpayer obtain and retain the necessary certifications and documentation to claim the deduction (see, IRS Notice 2006-52 for these

Thank you, Gene V. I really appreciate your information and to others who responded.

Happyguy1