What line do I write off a storage building on a schedule C?

My husband is a painting contractor. I usually know what goes where on our taxes but this year we pruchased a portable storage to put teh paint in and a generator. I want to write these things off on the schedule C but I am not sure if I write it on the "other" line or the section 179 depreciation line. Does anyone out there know? Thanks

What line do I write off a storage building on a schedule C?
Most portable storage buildings can be easily detached from their foundations. They are considered tangible personal property. Your storage shed is depreciated using form 4562. It generally has a MACRES recovery period of 7 years. Include the cost of pouring the foundation, the cost of delivery, the cost of installation as part of the basis.





The cost of the building permit is an expense listed under license fees, line 23, Schedule C.





Whether or not your portable shed is attached to a permanent foundation, you can expense it by taking a 179 deduction, if you wish.





A large storage building classified as non-residential real estate has a longer class life of 39 years. A storage building that does not easily detach from it's foundation becomes a fixture, or an improvement, or an attachment, and is depreciated with a class life of 39 years. You can not take a 179 deduction for such a building.





A poured concrete foundation becomes a fixture to the land if it would be difficult to dig up and remove. As a fixture, it would not be included in the depreciated cost of the shed. It would be depreciated separately. I have seen some say it has a recovery period of 20 years.





Enter the amount of depreciation you are allowed on line 13, of Schedule C.





If there is electric running to your shed, you may deduct the portion of the electric bill related to the shed.





See if your county or state has a Tangible Personal Property assessor. Many areas across the country require a separate TTP tax return from all business owners.





A storage building attached to the ground is something that gets argued. The rules are not perfectly clear. Some are of the opinion that since it is technically attached to the ground, it becomes real estate, rather than personal property, and therefore is not eligible for a 179 deduction.





Is the IRS going to care that you expensed out a $1200 tool shed, available from Home Depot or where ever? I don't think so. It should be considered a lockable covering used to protect your tools and paint from the elements, and keep them safe from theft. It should be considered personal property.





Good luck. Hope this helps.
Reply:I wonder what their answer was over the phone. Report It

Reply:You depreciate buildings. You cannot take a Section 179 deduction for a building or improvements to a building.
Reply:This is going to be a capital asset and either must be depreciated or you may section 179 it if all other conditions are met. You will use form 4562 for depreciation.