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Senior Contributor

Hey BA! Tax question on handling tiling costs?

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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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Honored Advisor

Re: Hey BA! Tax question on handling tiling costs?

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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".

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Senior Contributor

Re: Hey BA! Tax question on handling tiling costs?

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Beautiful!

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).

Make sense?

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Honored Advisor

Re: Hey BA! Tax question on handling tiling costs?

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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   Smiley Happy

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Senior Contributor

Re: Hey BA! Tax question on handling tiling costs?

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Honored Advisor BA,

Done. Thanks again. This was really helpful.

Cheers,

Packard

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