How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask BK-CPA Your Own Question
BK-CPA, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 933
Experience:  Owner of a CPA firm
Type Your Tax Question Here...
BK-CPA is online now
A new question is answered every 9 seconds

If I put a solar water heating device on my commercial building

Customer Question

If I put a solar water heating device on my commercial building in 2010 can I get the bonus depreciation spoken of in us code citation 26usc section 481 ?
Submitted: 6 years ago.
Category: Tax
Expert:  BK-CPA replied 6 years ago.
Chat Conversation Started


Expert:  BK-CPA replied 6 years ago.

I don't think there is a bonus depreciation allowance associated with Title 26 of the US Code, Section 481. Here is that very section, which has to do with adjustments due method changes in accounting (are you thinking about a tax credit perhaps?):


TITLE 26 > Subtitle A > CHAPTER 1 > Subchapter E > PART III > § 481

§ 481. Adjustments required by changes in method of accounting







I do think you might be talking about the bonus depreciation discussed in IRC 168 (ie, Title 26, Internal Revenue Code Section 168). That is the 50% bonus or special allowance as is also referred.


It is true, I believe, under the right conditions. The first major barrier is that Congress has to extend the bonus depreciation election to assets purchased in 2010. The second is overcoming the fact that IRC 1250 property (real property) does not qualify for bonus depreciation in general, having too long a class life (must be less than 20 years). This is accomplished by buying a property described in IRC 168(e)(3)(B) and/or IRC 48(a)(3)(A) relating to your solar water heater (but not for a swimming pool), as five year property (not real property). Assuming that happens, here is the current code and thank you for your question:


IRC 168


(k) Special allowance for certain property acquired after December 31, 2007, and before January 1, 2010


(2) Qualified property For purposes of this subsection-


(A) In general The term "qualified property" means property-



(I) to which this section applies which has a recovery period of 20 years or less,

(II) which is computer software (as defined in section 167 (f)(1)(B)) for which a deduction is allowable under section 167 (a) without regard to this subsection,

(III) which is water utility property, or

(IV) which is qualified leasehold improvement property,


(ii) the original use of which commences with the taxpayer after December 31, 2007,


(iii) which is-

(I) acquired by the taxpayer after December 31, 2007, and before January 1, 2010, but only if no written binding contract for the acquisition was in effect before January 1, 2008, or

(II) acquired by the taxpayer pursuant to a written binding contract which was entered into after December 31, 2007, and before January 1, 2010, and


(iv) which is placed in service by the taxpayer before January 1, 2010, or, in the case of property described in subparagraph (B) or (C), before January 1, 2011.








Normally, Section 1250 property does not qualify for bonus depreciation, however, there is an exception. Note IRC 168(e)(3)(B):


(B) 5-year property The term "5-year property" includes-


(vi) any property which-


(I) is described in subparagraph (A) of section 48 (a)(3) (or would be so described if "solar or wind energy" were substituted for "solar energy" in clause (i) thereof and the last sentence of such section did not apply to such subparagraph),









Now, off to IRC 48(a)(3)(A), described above in IRC 168(e)(3)(B)(vi)(I), which just so happens to be here:

§ 48. Energy credit

(a) Energy credit

(3) Energy property For purposes of this subpart, the term "energy property" means any property-


(A) which is-


(i) equipment which uses solar energy to generate electricity, to heat or cool (or provide hot water for use in) a structure, or to provide solar process heat, excepting property used to generate energy for the purposes of heating a swimming pool,






Edited by BK-CPA on 9/1/2010 at 7:14 PM EST

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Previous | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA

Meet The Experts:

  • Wallstreet Esq.

    Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    10 years experience
< Last | Next >
  • Wallstreet Esq.'s Avatar

    Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    10 years experience
  • Mark D's Avatar

    Mark D

    Enrolled Agent

    Satisfied Customers:

    MBA, EA, Specializing in Business and Individual Tax Returns and Issues
  • Richard's Avatar


    Tax Attorney

    Satisfied Customers:

    29 years of experience as a tax, real estate, and business attorney.
  • Robin D.'s Avatar

    Robin D.

    Senior Tax Advisor 4

    Satisfied Customers:

    15years with H & R Block. Divisional leader, Instructor
  • Megan C's Avatar

    Megan C

    Certified Public Accountant (CPA)

    Satisfied Customers:

    Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
  • jgordosea's Avatar


    Enrolled Agent

    Satisfied Customers:

    I've prepared all types of taxes since 1987.
  • R. Klein, EA's Avatar

    R. Klein, EA

    Enrolled Agent

    Satisfied Customers:

    Over 20 Years experience