Tax Code For Full Yearly Payoff
I have been told outside of my Accountant that I could have written off the entire amount of 7 Air Conditioners that were installed last year instead of depreciating them over 7 years??
Now of course the Air Conditioners are external to the real estate so they have to be depreciated.
Does anybody know what the tax code is that allows depreciation or writing them off in One Year??
Basically on our taxes you have to specify which tax code your going to follow.
Does anybody know this off hand??
Section 179 depreciation expense, I believe.
Last time I checked, section 179 did not apply to rental real estate.
Depending on the cost, choosing to depreciate or write off in one year a replacement item has always been a "gray" area. Accountants usually go the conservative route, investors usually want to push the edge.
Good News, this way you will have deductions down the road when you will be making even more money ;o)
[addsig]
I see someone has already posted this, but...
Publication 946, chapter 2:
"EXCEPTED PROPERTY
Even if the requirements explained in the preceding discussions are met,
you cannot elect the section 179 deduction for the following property....
* Air conditioning or heating units."
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Even further as JoanAlyce pointed out,
"Publication 527. RESIDENTIAL RENTAL PROPERTY (Including Rental Of Vacation Homes)...
SECTION 179 DEDUCTION. You cannot claim the section 179 deduction for
property held to produce rental income
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It appears your accountant knows what they're doing after all...
Crap! I was afraid of that. Thanks guys!
No problem. Glad I/we could help...