GAS STATION BUILDING NEW

[mike9]

In pro Series What is the asset type for the building , 1250 property, which can be depreciated over 15 years ?

Also does the 15 year allow for Bonus depreciation?

Thanks for your help

Mike

[abctax55 · Accepted solution]

I would suggest a cost segregation study as I imagine there are MANY components to a gas station, with many different depreciable lives to consider

[TaxGuyBill]

What are the assets and what depreciation category that you think they are in?

[abctax55]

Bill.... you *really* need to upgrade your avatar 🤣

[TaxGuyBill]

LOL.  I can't even tell  what that 'default' avatar is that they gave me.  

Okay, I just checked and it is a "flute" (under musical instruments).

[mike9]

Thank you Bill for your quick response. Can you advise what asset type a 15 year building would go tot on pro Series?

Thanks for reminding me about qualified property. Only cost seg will help .

[TaxGuyBill]

I guess I'm asking WHY do you think it is 15 year property?  A new commercial building is usually depreciated over 39 years.  Why do you think 15 years is appropriate?

[mike9]

Gas Station Building 15 year property . Should b SL

[mike9]

Section 168(e)(3)(E)(iii) provides that any section 1250 property which is a retail motor fuels
outlet (whether or not foo   or other convenience items are sold at the outlet) is
classified as 15-year property.

[TaxGuyBill]

Great.  If that isn't an option on the  Asset Enter Worksheet, then select "Other" and then scroll WAY down to the bottom to manually fill it the Recovery Period and other details.

Yes, because the Recovery Period is less than 20 years, it should qualify for Bonus depreciation (IF you want to do that).

[mike9]

Unless I am wrong about this ..Qualified property for Bonus  as it relates to Building ( 1050) is only available for the interior and not HVAC, Roof , Exterior etc. Only way to quantify interior  is to do a cost seg.

?

[TaxGuyBill]

I see no such restriction in §168(k) or Publication 946.   Can you find any support for the restriction?

https://www.law.cornell.edu/uscode/text/26/168#k

https://www.irs.gov/pub/irs-pdf/p946.pdf#page=23

[mike9]

I really cant...except an overreach ( ?) that under the definition of Qualified Improvements it proscribes

 improvements to elevators, escalators, internal structural framework of a building, or enlargement of a building.

I think your position is correct and one can write off an entire cost of a building up to $1 million for a qualified Retail Motor Fuel Outlet.