Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

This answer was rated:

Is there a cost to using this service? How is the rest of…

Is there a cost...

Is there a cost to using this service?

Accountant's Assistant: You just pay a $5 deposit now and the rest only when you get a reply from the Accountant. All of this is 100% satisfaction guaranteed, so you can get a refund if you're not happy for any reason.

How is the rest of the charge determined?

Accountant's Assistant: The Accountant will know how to help. Please tell me more, so we can help you best.

Where do I make the deposit?

Accountant's Assistant: Is there anything else important you think the Accountant should know?

My question relates to the availability of the Section 179 deduction for improvements to a car wash in 2017.

Show More
Show Less
Ask Your Own Tax Question
Answered in 3 minutes by:
3/22/2018
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 14,622
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Verified

Hi. …. My name’s Lane,

I hold a law degree (J.D.), with concentration in Tax Law, Estate law & Corporate law, an MBA in finance, a BBA, and CFP & CRPS (Chartered Retirement Plans Specialist) designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, to clients on three continents, since 1986.

I’m reading your question now.

Bear with me a moment while I type up my response.

….

Then if you have further questions we can go from there.

Ask Your Own Tax Question

The answer to your question depends on whether or not the equipment become attached permanently to the structure.

...

See this from U.S. Master Tax guide

...

  • Real Property does not qualify for the Section 179 Deduction. Real Property is typically defined as land, buildings, permanent structures and the components of the permanent structures (including improvements). Other examples of property that would not qualify for the Section 179 Deduction include paved parking areas and fences.
  • Property used outside the United States generally does not qualify for the Section 179 Deduction.
  • Property that is used to furnish lodging is generally not qualified for the Section 179 Deduction.
  • Property acquired by gift or inheritance, as well as property purchased from related parties does not qualify for the Section 179 Deduction (No, you can't sell equipment to yourself and qualify for Section 179).
  • Any property that is not considered to be personal property, may not qualify for the Section 179 Deduction.
  • Used Equipment (that is new to you) qualifies for Section 179, however used equipment does not qualify for Bonus Depreciation (if offered in a given tax year).
Ask Your Own Tax Question

However, it's likely that you do (if this becomes a permanent improvement) still qualify for bonus depreciation under §116.

...

Under the PATH Act, Sec. 168(k) provides a depreciation deduction equal to 50% of the adjusted basis of qualifying property in the first year it is placed in service for property placed in service in 2015, 2016, or 2017. The percentage phases down to 40% for property placed in service in 2018 and to 30% for property placed in service in 2019.

...

"Qualified improvement property" is a new class of nonresidential real property that is eligible for bonus depreciation, starting with improvements placed in service in 2016. It replaces the former class of qualified leasehold improvement property.

...

Qualified improvement property is defined in Sec. 168(k)(3) as improvements to the interior of any nonresidential real property placed in service after the date the building was first placed in service.

...

However, qualified improvement property does not include expenditures to enlarge a building, for any elevator or escalator, or for the internal structural framework of the building.

Ask Your Own Tax Question
Customer reply replied 3 months ago
Owner improved the property. Thinking the expenditure would be a qualified leasehold improvement under 168(e)(6) as it didn't enlarge the building or impact the internal structural framework of the building. As such, my sense is it does qualify for 179 treatment. Your thoughts?

Is it a permanent improvement? (does it stay with the structure)?

Ask Your Own Tax Question
Customer reply replied 3 months ago
I'll ask. This might be a few hours before I here back.

I'll be here ... If it does then it's not 179, but DOES qualify for bonus under 116.

...

Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 14,622
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Verified
Lane and 87 other Tax Specialists are ready to help you
Ask your own question now
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Lane Your Own Question
Lane
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 14,622
14,622 Satisfied Customers
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986

Lane is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

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... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...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.WMatteson, 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.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, 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.

OrvilleHesperia, 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!!!!

AlexLos 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.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,512 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,569 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

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

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
I need help filling out form 4562 i want to take section 179
i need help filling out form 4562 i want to take section 179 for my van i acquired last year full amount but my software doesnt let me what i am missing? … read more
Mark Anderson
Mark Anderson
Attorney
Doctoral Degree
10 satisfied customers
This is for a tax question. What method do I use for
This is for a tax question.What method do I use for depreciation of an auto and for how many years?… read more
Lane
Lane
JD, CFP, MBA, CRPS
14,622 satisfied customers
One of my clients purchased a new car in 2017, which he uses
One of my clients purchased a new car in 2017, which he uses 80% for business/20% personal. He paid a down payment and financed the remainder. What is the best way to record the purchase and and month… read more
Lane
Lane
JD, CFP, MBA, CRPS
14,622 satisfied customers
I am a small business owner and would like to purchase a
Hello,I am a small business owner and would like to purchase a vehicle for my business. I'm considering buying a vehicles that qualified for Section 179 deductions. How can I confirm whether or not a … read more
Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,463 satisfied customers
I just purchased a vehicle for my business, it is a 2015
I just purchased a vehicle for my business, it is a 2015 Chevy Traverse. What are the current depreciation rules available to deduct the most if not all the expense this year. I remember a few years a… read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,325 satisfied customers
Lev You answered questions regarding section 179 corp and
LevYou answered questions for me regarding section 179 for S corp and business vehicle. Around December 2015. You may remember.I know the section 179 limits for business vehicle have not been released… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I set up a LLC this year business, I want to reduce my
I set up a LLC this year for home business, I want to reduce my business income for tax purpose. If I buy a new car, will the cost of the car be deducted as business expense? thanks… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Rental property (I am the landlord), on 1040 is it better
For a rental property (I am the landlord), on 1040 is it better to have the house depreciate or should I do 179 Deduction. I appreciate your help.… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
Section 179 limit for assets placed in service in 2014. And
Section 179 limit for assets placed in service in 2014. And improvements to our winery building, what amortization period? We are renting the building.… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
I'm buying a car tomorrow and want to know whether to purchase
I'm buying a car tomorrow and want to know whether to purchase it from my business or personal account (I'm a sole proprietor and want to deduct as much as possible from the purchase in the 2014 year)… read more
Lane
Lane
JD, CFP, MBA, CRPS
14,622 satisfied customers
I am an independent contractor and leased a car for 3 years
I am an independent contractor and leased a car for 3 years ending in July 2013- I made larger payments this last year than the lease amount and then in July 2013 bought the car at the buy out amount.… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
In 2012 is it still possible to take a first year expensing
In 2012 is it still possible to take a first year expensing sec. 179 on an auto placed in service this 4th quarter on my Sch. C. My old car is under SL depreciation. And I suppose the new car would ha… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
want to ask you another question: how to deduction the car
want to ask you another question: how to deduction the car expenses ? if the share holder bought a car mainly for the S-corp company's use, can the entire amount be deducted from the S-corp income? Ho… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I am a realtor and I just bought a new 2012 car in 2011. I
I am a realtor and I just bought a new 2012 car in 2011. I paid like $4,000 down and then financed the rest. Can I deduct the total cost of the car on my taxes now and then the interest I pay each yea… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
If I install a new HVAC system in a rental property - is that
If I install a new HVAC system in a rental property - is that considered repairs or improvements? If it's an improvement, do I have to depreciate it out?… read more
Richard
Richard
Tax Attorney
Doctoral Degree
4,512 satisfied customers
I just started an online business (a car dealership ...
I just started an online business (a car dealership marketing website). Anyways my question is 2 fold: First, for security issues i just recently started an LLC for the site. So question 1: can i cont… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
The owner of the company wants to buy a new car. I was ...
The owner of the company wants to buy a new car. I was told I could expense $17,000 of the cost. Then someone else said the threshold was $15,000, someone else said $20,000. Which is it? What I''m pla… read more
jgordosea
jgordosea
Enrolled Agent
Bachelor's Degree
2,885 satisfied customers
How do I make a 179 tax deduction for a car purchased ...
How do I make a 179 tax deduction for a car purchased for my partnership in 2005 using form 4562? What parts of form 4562 do I fill out and how do I reflect this on my partnership returns? Optional In… read more
Jon Andrews
Jon Andrews
CPA
2,926 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x