 Section 179 (by Tris1968 [OH]) Oct 16, 2018 1:51 PM
 Section 179 (by Tom [FL]) Oct 16, 2018 2:31 PM
Section 179 (by fred [CA]) Oct 16, 2018 4:41 PM
Section 179 (by AllyM [NJ]) Oct 16, 2018 5:42 PM
Section 179 (by myob [GA]) Oct 16, 2018 8:22 PM
Section 179 (by Marv [IL]) Oct 17, 2018 5:46 AM
Section 179 (by WMH [NC]) Oct 17, 2018 2:06 PM
Section 179 (by Tris1968 [OH]) Posted on: Oct 16, 2018 1:51 PM
Message:
I've looked online, listened to podcasts, and asked two different CPA's and I've gotten lots of different answers.
I want to know if I can completely expense a new furnace in a residential rental home utilizing Section 179.
All homes are held in an LLC, if that makes any difference.
Anyone have an answer for me? --174.104.xxx.x |
Section 179 (by Tom [FL]) Posted on: Oct 16, 2018 2:31 PM
Message:
Tris1968 of OH go to IRS.gov and check out the section for residential rental furnace expense under an LLC? And yes the IRS paperwork can be a pain to read over and understand it. But if you know the form that the expenses are listed for your rentals under the llc then you can read about how to handle it. Most likely one of the CPA may have told you incorrect information, its possible.
--99.56.xx.xx |
Section 179 (by fred [CA]) Posted on: Oct 16, 2018 4:41 PM
Message:
I found this site:
taxmap.irs.gov/taxmap/pubs/p.946-009.htm
there is a list of 6 criteria to determine what personal property can be deducted as an expense under section 179 as oppose to be depreciated over time.
From what I understood, and I could be wrong, a heater is not one of them.
The way I do it when replacing an A/C-Heater unit, is I claim it in schedule E Seems to be acceptable. My logic is: replacing a non functioning A/C, Heater or furnsce is a necessity to continue producing income, just like new windows, new garage door, new appliances, and so on.
The fact that two CPAs could not give you a definite answer says that section 179 is misunderstood as far its use. I bet you, if you call the IRS you'll be even more confused after the conversation.
I would not try to claim a new heater under section 179, whether the home is an LLC or not. Just don't tell them "Fred told me so".
BTW, how much is this new furnace installed? --99.59.x.xxx |
Section 179 (by AllyM [NJ]) Posted on: Oct 16, 2018 5:42 PM
Message:
Are you talking about the new tax rules for this year? I do recall hearing on the news that it's a lot friendlier to business and more items can be expensed rather than depreciated. My CPAs are still studying it they say. --73.178.xxx.xx |
Section 179 (by myob [GA]) Posted on: Oct 16, 2018 8:22 PM
Message:
That was a laugh. 2 CPA's couldn't agree-- call 40 IRS agents and you'll get 39 different opinions.
If you have a HVAC unit and only replace the furnace take the deduction-- it's like doing half a roof repair. You didn't replace the WHOLE HVAC system only the furnace part.
It's called the gray area and as a LL we love gray-- use the Cris Columbus theory-- Columbus took a chance-- and look at how it turned out.
How we avoid this problem: we have a warehouse- keep stoves dishwashers and furnace/ac units-- standard models-- when ones needed we pull from stock-- stock is not depreciated but billed as item purchased for business. --192.168.xxx.xxx |
Section 179 (by Marv [IL]) Posted on: Oct 17, 2018 5:46 AM
Message:
The answer is no. It is considered part of the building. You don't take out the furnace and move it to your next house. Parts of the building are not subject to 179 depreciation. --173.15.xx.xxx |
Section 179 (by WMH [NC]) Posted on: Oct 17, 2018 2:06 PM
Message:
LOL Marv we HAVE removed an HVAC unit! --50.82.xxx.xx |
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