Discussion:Paint Spray Booth Depreciation

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Discussion Forum Index --> Tax Questions --> Paint Spray Booth Depreciation

FLAEA (talk|edits) said:

14 December 2006
I have a client that spent a substantial amount to install two paint spray booths in his auto paint business. He wants to deduct over 5 years. I'm not real sure if it should be 5 or 15 or what? Some websites indicate it is an asset class 15.0 which is 5 years but I'm not real comfortable with a 5 year depreciation. Each spray booth is about $30,000. My understanding is that it is a tangible asset that could be moved to the next location as opposed to a leasehold improvement which remains a part of the building.

Any suggestions?

Will (talk|edits) said:

14 December 2006
I don't know FLAEA, how are they describing the asset so that it fits under 15.0 Construction? Based on what I read in the Publication 946 tables I think it would fit into un-classed at 7yrs.


Dennis (talk|edits) said:

14 December 2006
These are actual rooms with fan forced air vents which may or may not feed through chambers that remove particulates. There is also an outside line for the air intake. I have never seen this treated in any other manner than an improvemnt to real property. ♫

Deback (talk|edits) said:

December 14, 2006
FLAEA - I have a monthly client with an auto body repair shop. Two years ago, he installed a paint booth for $41,000. I'm depreciating it as equipment over 7 years. His local property tax assessor agreed that the booth was not a building improvement or an integral part of the building, since the booth can be moved.

Sandysea (talk|edits) said:

14 December 2006
I agree with Dennis however. Rooms are specifically built for this purpose for climate control and dust control. FLA are you in Florida? I am, and I have a client with a spray booth for refinishing furniture. The property appraisers office in this district of Florida has categorized it as a leasehold improvement but the spray equipment is being depreciated for 7 years. It is part of the EPA guidelines for dust and pollutants that caused this in Florida to be treated as an improvement to the property. My client cannot just remove this as it would leave a gaping hole in the roof of the building. Deb may be right in her area, so it might take some looking for you to discover what is applicable via the property appraisers office??

Deback (talk|edits) said:

December 14, 2006
I guess it depends on if the booth can be moved or if it's an integral part of the building. I remember that I chose the depreciation period after the assessor had inspected the booth and made his determination.

Lhhesscpa (talk|edits) said:

14 December 2006
Flaea: I think 7 seems safe, but for 5 I would consider asset class 57.0, Distributive Trades and Services: Includes assets used inn whole and retail trade .... --Larry Hess, CPA - Albuquerque, NM

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