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The first requirement to receive a refund is to have paid money into the system.
It sounds like your improvements could qualify for bonus depreciation
I don't think Section 179 will work since it is limited to business income (which is a loss)
You would deduct the expense in the year they relate. For fixed assets this the date placed in service. However the loss can carryforward or back.
If the 2011 activitiy creates a Net Operating Loss you could carry this back 2 years and claim a refund on IRS Form 1045.
How is the company organized?
LLC, S Corp, Corp ...
Then yes you can still carryback
Did you pay taxes in the last 2 years?
Do you know how to calculate taxable income for 2011. That will be the first step to getting the Net Operating Loss.
Well since it is the first year you owned the place you might want to work with someone.
Here is a guide the IRS made for starting a business www.irs.gov/pub/irs-pdf/p583.pdf
Yes that is correct see this form www.irs.gov/pub/irs-pdf/f1045.pdf
What type of business is it?
Construction has unique options with respect to their method of accounting that need to be established. I think working with a CPA would be a good idea especially if you want to file Form 1045 which can be confusing also.
What type of improvements did you make. They might be considered capital expenditures and need to be depreciated over 39 years.
The new equipment would qualify for 100% bonus depreciation. The vehicles would too if they are over 6,000 GVWR.
Do you own the shop or rent? If the shop is subject to a lease then the ventilation system would likely qualify as well.
To qualify for bonus the property must be new. Were the cars used?
Well then the shop improvements would qualify as leasehold improvements can all be deducted in year 1 in leu of depreciation over a number of years. THe improvemens can't be structural and need to be to the interior of the building.
It would help your cash flow and increase the NOL that can be carried back.
This would give a bigger refund.
However in future years you wouldn't have any depreciation and would owe more money then so it is a trade off.
Good luck with the construction business. Keep me in mind if anything else comes up.