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Tax ?- Building Expense

Discussion in 'Business Operations' started by ted putnam, Dec 15, 2010.

  1. ted putnam

    ted putnam LawnSite Platinum Member
    Posts: 4,539

    I built and moved into a 36x40 shop at the beginning of this year. It is on my personal property. 98% of that shop is used in the day to day running of my business. I was wondering if anyone knew to what extent the building is deductible on my taxes, if at all. Is it only a portion of the payment? Do I have to treat it like rent? etc... I have a tax professional that will advise me later but I was trying to get some preliminary end of the figures together and was curious. Any ideas would be much appreciated.
  2. Fvstringpicker

    Fvstringpicker LawnSite Fanatic
    Posts: 7,603

    The building is deductible. However your labor costs are not. So essentially you will depreciate the material costs and any outside labor/contractor expense.
  3. ted putnam

    ted putnam LawnSite Platinum Member
    Posts: 4,539

    You are correct. I've already talked to my tax pro. I'll take your answer one step further in case any others out there have the same situation. It will have to be depreciated for a minimum 10 yrs. Also, if and when I sell my house/property, I will have to repay that depreciation to the government in the form of capital gains. That SUX... Oh well, I still love my shop.

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