Discussion:Sec. 179 & Rental Equipment
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Discussion Forum Index --> Basic Tax Questions --> Sec. 179 & Rental Equipment
Discussion Forum Index --> Tax Questions --> Sec. 179 & Rental Equipment
| 25 October 2007 | |
| I have an S-corp that rents equipment out to other businesses. Can they sec. 179 the pruchases of new rental equipment? | |
| 25 October 2007 | |
| Incoming production assets does not qualify for Section 179 Depreciation. | |
| 25 October 2007 | |
| that is true as long as renting property is not your trade or business. But it is the business for this S-corp. So, is it still not deductible and if so, under what part of sec. 179? | |
Mtmckeecpa (talk|edits) said: | 25 October 2007 |
| Aev,
179 is available, plus I would look at Asset class 57 (5 years) to depreciate any equipment not taken under 179. | |
Bushmaster (talk|edits) said: | 25 October 2007 |
| Pegoo, it sounds like you are saying that these assets do not qualify, which is not correct. | |
| 26 October 2007 | |
| thank you Mtmckecpa. What part of 179 is that under? I would like to read the section pretaining to that. Thanks again! | |
TheTinCook (talk|edits) said: | 26 October 2007 |
| Asset class 57 is for stuff used in distributive trades and services. Things like shelves used in retail stores. It really has no relation to Sec 179. | |
| 26 October 2007 | |
| I am asking about 179 though and where it says that this company can use 179 (not the asset class 57) | |
Death&Taxes (talk|edits) said: | 26 October 2007 |
| You are looking for something that is not there. Go to Sec. 179(d). This is the part that defines the assets that qualify, but you are not going to find a detailed list. TC and Mtm are only trying to tell you how to depreciate any amounts you decide are not needed to be expensed [for various reasons] or can't be expenses for reasons of income. | |
TheTinCook (talk|edits) said: | 26 October 2007 |
| If it meets the requirements in Sec. 179(d)(1) and you don't meet one of the exceptions (i.e. personal type property used in lodging, or air conditioning) you can deduct it under Sec 179.
There is a limit on non-corporate lessors which may apply to you. | |
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