Discussion:NEW TRANSMISSION FOR LOADER
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Discussion Forum Index --> Basic Tax Questions --> NEW TRANSMISSION FOR LOADER
Discussion Forum Index --> Tax Questions --> NEW TRANSMISSION FOR LOADER
Mmstauffer (talk|edits) said: | 19 November 2007 |
| I have a client who installs undergroud utilities for residential and commercial projects. A loader was repaired with a new transmission in the amount of $16,822. Can this repair be included in the current year Section 179 expense or is it required to be depreciated? | |
| 19 November 2007 | |
| REG-168745-03 (2006, withdrawn) | |
| 20 November 2007 | |
| It should be capitalized but Section 179 could be taken if the requirements for 179 are met. | |
Death&Taxes (talk|edits) said: | 20 November 2007 |
| You might read PLR 9618004, which is about aircraft engines or the famous Fed Ex case [FedEx Corp. v. U.S., (CA 6 2/16/2005) 95 AFTR 2d 2005-1105] but draw your own conclusion. Just to give us an idea, what does this machinery cost new? | |
Bushmaster (talk|edits) said: | 20 November 2007 |
| Not enough info to determine. If you have the room, you can always capitalize and sec 179. | |
| 20 November 2007 | |
| I would expense the transmission. It clearly is a repair regardless of the dollar amount. | |
Bushmaster (talk|edits) said: | 20 November 2007 |
| I like Jctmstx's answer. The OP did call in fact call this a repair not once but TWICE!! | |
| 20 November 2007 | |
| It does not increase the value of the loader but only returns it to its original state. It's a repair. | |
| 21 November 2007 | |
| Upon further reflection, I would have to say I agree with Jctmstx . It clearly is a repair, and restores it to its previous operating condition as Ray said. | |
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