Hot water heater

[gman]

Is the section 179 available for a Hot water heater for a laundromat? Cost 10,000.

[TaxGuyBill]

I would say "No". However, that doesn't necessarily mean it's not fully deductible.


I would say the hot water heater is part of the "plumbing system". As such, it is §1250 property and IF it is depreciated, it would be depreciated over 39 years and NOT be eligible for §179.

However, it's possible that under the new Capitalization Regulations, it's POSSIBLY a fully deductible repair.

http://www.kbkg.com/nationwide/brochures/KBKG-repairs-decision-tree.pdf

http://mcgladrey.com/content/dam/mcgladrey/pdf_download/tars_flowchart_capitalize_improvement.pdf

[Kram BergGold]

I vote 179

For rentals I have always treated hot water tanks as 5 year property. Their true useful life is between 5 and 10 years depending upon the quality of the product. I treat it just like a dishwasher.

[ttbtaxes]

How many water heaters does the laundromat have?