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Old 03-12-2011, 08:54 PM
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queen of spades queen of spades is offline
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New shop build - can it be deducted?

I built a new shop for my business (LLC) last year. Should I consider including as a deduction on my taxes?
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Old 03-13-2011, 09:10 AM
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queen of spades queen of spades is offline
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I'm only "dumbfounded" by the tone of your reply.

I planned to check in with a local tax guy next week, but was interested to see what others thought. We are allowed to deduct utilities, rental costs, gas to jobs, and equipment among other things. If I use the shop for my business, why not. What is the difference between a shop and a new $40k piece of equipment? Both are used for the business.

Hardly a stupid question. Only stupid people wouldn't want to save money and reduce taxes paid.
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Old 03-13-2011, 09:25 AM
SDelPrete SDelPrete is offline
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yes you should deduct the cost of building it
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Old 03-13-2011, 09:34 AM
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JFGauvreau JFGauvreau is offline
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Yes, is it after all your business HQ.
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Old 03-13-2011, 09:37 AM
nepatsfan nepatsfan is offline
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Quote:
Originally Posted by queen of spades View Post
I'm only "dumbfounded" by the tone of your reply.

I planned to check in with a local tax guy next week, but was interested to see what others thought. We are allowed to deduct utilities, rental costs, gas to jobs, and equipment among other things. If I use the shop for my business, why not. What is the difference between a shop and a new $40k piece of equipment? Both are used for the business.

Hardly a stupid question. Only stupid people wouldn't want to save money and reduce taxes paid.
The only thing that dumbfounds me is the fact that someone would ever think that it would for any reason not be tax deductable. You can deduct a room in your house as a home office. Why on earth would anyone think that a building built and dedicated for business would not be tax deductable.
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Old 03-13-2011, 09:47 AM
New2TheGreenIndustry New2TheGreenIndustry is offline
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I was asking my accountant about building a shop, and he thought that I should build it and rent it to the company.
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Old 03-13-2011, 10:03 AM
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queen of spades queen of spades is offline
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Thanks all -- will confirm options with a tax person next week.
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Old 03-13-2011, 10:43 AM
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snomaha snomaha is offline
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Originally Posted by queen of spades View Post
Thanks all -- will confirm options with a tax person next week.
Not a tax person - commercial buildings (land excluded) are depreciated over 39 years using straight line depreciation.
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Old 03-13-2011, 10:52 AM
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snomaha snomaha is offline
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Quote:
Originally Posted by New2TheGreenIndustry View Post
I was asking my accountant about building a shop, and he thought that I should build it and rent it to the company.
Thought I would throw out a couple of pros and cons based on my experience.

pros - Own an asset that hopefully appreciates. Can collect rental income that is not subject to SS/med taxes.

cons - Own an asset that does not appreciate. Your company is the biggest or only tenant - if you go out of business you have lost that tenant.
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  #10  
Old 03-13-2011, 11:52 AM
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JB1 JB1 is offline
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sure you can, but I wouldn't.
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