Concession trailer - 5 yr property for depreciation?
allenc
year property only ? Or can I deduct it over 3 years. I need to offset
some business income with depreciation so as not to have to pay this
year and have some $$ left oer for property taxes due on 4/10. I know
I can deduct it as section 179 if I want to.
Also I put a roof on a rental property, cost of $7,000. I need to show
a loss on Sched E in order to offset some other income. Can I deduct
the roof over 3 years ?
Thanks,
Allen
Paul Thomas, CPA
"allenc" <twice.r...@gmail.com> wrote
>I purchased a concession trailer for business use in 2007. Is it 5
> year property only ? Or can I deduct it over 3 years. I need to offset
> some business income with depreciation so as not to have to pay this
> year and have some $$ left oer for property taxes due on 4/10. I know
> I can deduct it as section 179 if I want to.
I would consider the trailer as 7 year property.
If you have the option to take Section 179, then by all menas, do so.
> Also I put a roof on a rental property, cost of $7,000. I need to show
> a loss on Sched E in order to offset some other income. Can I deduct
> the roof over 3 years ?
If it rises to the level of an improvement in the property (as opposed to a
repair), then it's depreciated over nearly 28 years.
--
Paul A. Thomas, CPA
Athens, Georgia
allenc
possible to accelerate the depr over 3 yrs ? Sec 179 would only help
me this year, and 7 yr depre wouldn't hjelp me enough in any year.
Roof - This was not an improvement, it was to repair a roof that was
going to start leaking, so i would like to write it off this yr as an
expense if possible
Thanks,
Allen
On Feb 4, 5:21 am, "Paul Thomas, CPA" <paulthomascp...@bellsouth.net>
wrote:
> "allenc" <twice.redee...@gmail.com> wrote
Paul Thomas, CPA
"allenc" <twice.r...@gmail.com> wrote
> Trailer - I would like to offset income over the next 3 yrs, is it
> possible to accelerate the depr over 3 yrs ? Sec 179 would only help
> me this year, and 7 yr depre wouldn't hjelp me enough in any year.
I just don't see the trailer as three year property at all.
Look at Pub 946. At best you can argue it should be in the 5 year MACRS
category. But the trailers they are refering to are those that hook behing
tractors - as in tractor/trailers. Vehicles, most everything with a motor
and wheels, is 5 year property.
You need to be sure they clasify that trailer as 5 year peoperty, and not a
longer time. You also may have property IN the trailer that would be longer
property (stoves, ovens, grills, refrigerators, freezers, etc and so on),
which may be 7 year property or something else.
You just don't get to pick your depreciation method and years based on your
financial situation.
allenc
On Feb 4, 9:19 am, "Paul Thomas, CPA" <paulthomascp...@bellsouth.net>
wrote:
> "allenc" <twice.redee...@gmail.com> wrote
Paul Thomas, CPA
"allenc" <twice.r...@gmail.com> wrote
I thought an accelerated depr method was available.
It would be. But you can't claim property that would be 5 years as three
year property because it suits your needs better.
Claim it as 5 year property, and if you qualify and elect, take Section 179
on some portion of that amount.
allenc
wrote:
> "allenc" <twice.redee...@gmail.com> wrote
Assuming the trailer cost $7,000, and I purchased it in 2007 and sec
179 is available to me, I could claim it as 5 yr property, but this
year depr $3,000 as sec 179, and then for the remaining 4 years, depr
1k per yr?
Paul Thomas, CPA
"allenc" <twice.r...@gmail.com> wrote
> Assuming the trailer cost $7,000, and I purchased
> it in 2007 and sec 179 is available to me, I could
> claim it as 5 yr property, but this year depr $3,000
> as sec 179, and then for the remaining 4 years, depr
> 1k per yr?
Yes and no. The remaining year(s) are at the scheduled percentages for
MACRS. There's also some fractional amount of regular depreciation for this
year on the portion that is ~not~ expensed through Section 179. 20% of the
balance. So an $800 deduction if you took a mid-year rate.