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179 Expense Improvement to Garage

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    179 Expense Improvement to Garage

    A client operates a garage in his back yard. The Garage is a separate structure from the house. In 2006 he personally tore out part of one wall and extended the garage so he would have more room for storage. Is there any possible way we can take a section 179 election to expense on part of what he spent for building materials?

    When I call the whatever it is a "15/20 improvement" my software lets me take a 179 but I figure I ought to understand what that is and what the rules are for claiming it before I just blithely claim it. The only reason I even thought of this is that it does seem to me that he has put an improvement (at least in the ordinary sense of the word) on his garage.

    #2
    There are certain land improvements that are section 1245 property and elgible for sect 179, but what you have is not. It's treated the same as the shop, nonres. real estate.
    Dan

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      #3
      No 179

      It is an improvement to the garage that must be capitalized for the same length of time as the building being improved. The garage should be non rental real estate which is depreciated over 39 years. It is not eligible for section 179 treatment.

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