What is the best or recommended way to handle new field tiling costs in relation to taxes?
Do you take it as an immediate business deduction or do you depreciate the asset out over say, 15-20 years? I don’t suppose you could possibly do both?
Okay, so what say ye? Any thoughts or past experiences on the subject?
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Hey Packard, I`ve Section 179`d tile. You could put half on 20yr depreciation and other half on 179. You accountant can fix you up whatever is best. If you`re hooking on a old tile, there could be a gray area where you could call it a "repair".
After looking it up, I think Section 179 was made to order for our more modest requirements. Good stuff!
Okay, so this is a small follow up question. Suppose we were going to have the tiling installed sometime in late October, November, or early December of this year. Then suppose we arranged with the tiling company to pay in two separate payments. In other words, we would pay 1/2 up front in 2019, but then pay the second 1/2 in January of 2020. This would allow us to deduct 50% of our total costs this year and then take the final 50% next year (2020 tax year).
You might have to get your drainage contractor to be a little tricky with billing and dates when it was completed. Because the accountant always asks "when was it completed?" ..maybe make it into "2 jobs" for tax purposes