Tax Guru-Ker$tetter Letter
Tuesday, April 03, 2007
Sec. 179 For Storage Buildings?
Q:
Subject: 179 / 208A question
Dear Kerry aka Mr.Tax Guru,After reviewing your website page.I have an interplay of 179 and 280A question.
It is my understanding that most storage facilities are eligible for 179. If I sell autos or parts of autos and purchase a garage to store my autos/cars inside of (storage not attached to house) would this qualify under 179 or would this be a 208A issue?
Thanks.
A:
Your understanding about storage facilities is incorrect. Only specialized agricultural ones qualify for Section 179 deductions.
A garage or warehouse does not qualify.
You need to be working with an experienced professional tax advisor before you get yourself into big trouble with IRS by trying to use Section 179 on unqualified assets.
Good luck.
Kerry Kerstetter
Labels: 179