Site Navigation

Your Account

Choose Language

Depreciate land and buildings used for the business?

I just bought a house with 9 acres. The house will be used for my personal residence. I'm going to use about 2 acres for truck and trailer parking and going to be building a shop on that 2 acres. How can I account for the land being used for business and the expenses with building the shop? Can it be written off or depreciated and how does that work? Thanks

Answer this question I have this problem too

Is this a good question?

Score 1
Add a comment

5 Answers

Most Helpful Answer

if your incorporated you can rent the garage to the corp (yourself)

Was this answer helpful?

Score 1

Comments:

I agree, while you may save a little now, legal fees at sale time me be considerable. Write yourself a rent check just as if you we're renting a comparable property.

by

Add a comment

It goes by percentage. So about 22% of the land could be depreciated, and the total cost of the shop and anything used solely for the trucking business. In addition, you should read up on home offices, and follow those guidelines until your shop is built. If you get a separate meter for the shop that would help to keep them separate. All the expenses related to the truck shop should all go on your schedule C on the proper line.

Was this answer helpful?

Score 0
Add a comment

Land is not eligible for depreciation see IRS guidelines

As a farmer we know a bit about this

Thanks

Was this answer helpful?

Score 0
Add a comment

After being audited by the IRS last year with every thing coming out good. I would not ask for tax help from any buddy except for a accountant or tax preparer. I came out great on my audit because I fallow my own advice.

Was this answer helpful?

Score 0
Add a comment

First off I also agree with Paul. Get a good accountant.I always did my own taxes until I bought some commercial property and had to deal with depreciation. But I do have some info,frfom my own experiances. Land is not a depreciable item under any terms, I havesome of my land set up for rental parking for drivers living in my area so that gives me rental income .I then am able to depreciate the fencing, lighting, gravel,snow removal,It is the same as any rental income ,you do not pay self employment,medicaidtaxes only federal and state

Was this answer helpful?

Score 0
Add a comment

Add your answer

Rick will be eternally grateful.
View Statistics:

Past 24 Hours: 0

Past 7 Days: 0

Past 30 Days: 0

All Time: 310