Discussion:Writing off a Roof using Sec179?
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Discussion Forum Index --> Advanced Tax Questions --> Writing off a Roof using Sec179?
Discussion Forum Index --> Tax Questions --> Writing off a Roof using Sec179?
| 22 May 2008 | |
| At various ads etc, the sales pitch is writing off of the $250,000 Sec 179. OK
However, the question has been brought up and advertised about writing off the new roofs. Looking through various places including the IRS site, I cannot find any changes in definitions of eligible property, just the $ limit. This would suggest that buildings and non-trade (rental item) are still not subject to Sec 179 at any limit. Even though some improvements are subject to 15 year property, if they are part of the structural building are they not still categorized as “building asset” 1231 property? – no 179 treatment. Comments/suggestions? | |
TheTinCook (talk|edits) said: | 22 May 2008 |
| Maybe if you made a §420 election.
First, structural stuff is §1250. §1231 relates to a type of gain. Secondly, it could be expensed as a repair depending on the extent of the replacement. Finally, some roofs can be §1245 property and thus be expensible under §179. I leave that exercise to the reader. | |
| 23 May 2008 | |
| In order for property to be covered under §179, it has to be tangible personal property, not real property. In addition, it has to be able to be moved.
Example: A gas station installed a canopy over the gas pumps. The roof of the canopy was welded on. IRS ruling: not moveable, therefore is is part of the real estate. If the canopy is bolted on, it is moveable (however unlikely), therefore it's §1245 tangible personal property and covered under §179. Likewise, if custom cabinetry is installed in such a way that it can't be moved without major renovation, it is part of the real estate. Bolt them on, and violá, its §1245 property covered under §179. | |
