Pole barn and taxes

[nwobcw]

  I'm getting coflicting reports on tax write offs on a new pole building for machinery storage.  I hear 20 years, 1/2 depreciation the 1st year, 5 years if one leases it.  What is it for sure?  Are there different ways to do it? 

[Jim Meade / Iowa City]

As I recall, I wrote all mine off the year it was built - 2009 or so - but I guess I'd have to double check with my CPA to be positive.

[nwobcw]

Could you give me the name of the rule or number or whatever.  When I asked my tax man/cpa he said it wasn't possible.  TIA

[Red Steele]

No wonder some guys get ahead...my tax guy only took 50% of my shed built in 2009.

The leasing scheme is a great one too, until you get audited.

If it smells like a duck and quacks like a duck, you call it a duck.

Machine sheds are 20 year property.....Bonus depreciation was 50%. Got that from a good source.

[nwobcw]

Is the bonus available next year?

[rodder7]

Not  yet

But it is in the senate bill and 100% for 2011, 50% for 2012

[SouthWestOhio]

http://www.irs.gov/publications/p225/index.html

This has all the guidelines but you still may want a local interpretation.  I would recomment you find a different person to help you with your taxes, the advice this guy gave you appears to be incorrect.

[nwobcw]

Thanks a lot I think.   I read thru it and it stated animal housing buildings.  How would you interpret it to machinery storage buildings?

[rodder7]

Machine sheds are 20 year property

They do not qualify for section 179

But do for bonus depreciation 50% at the moment

[nwobcw]

OK So I presume it will continue into 2011 under the present law.