can we depreciate property that we bought to expand our business?

Forum|Forum|1 year ago
February 17, 2025
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Best answer by Opus 17

Land does not depreciate. You can depreciate structures that are attached to the land but not the land itself. If you bought land, and have not yet built anything on it, you have nothing to depreciate. When you build something, you begin depreciation when the building is placed into service (you start using it), at the cost you paid, regardless of when you actually paid the bills for materials and construction. (In other words, if you bought land in 2024, and you build a building in 2025 that is completed in 2026 and you start using it in 2026, you add the building as an asset in 2026 using the total cost you paid for the building (not the land).

KeshaH

Yes, property purchased for business use can generally be depreciated over time. When you buy property like buildings, equipment, or other assets to expand your business, you can deduct a portion of the cost each year through depreciation.

If you've purchased property for your business expansion, you can enter the details in TurboTax and it will help you calculate the right depreciation amount for your tax return. The exact depreciation period will depend on what type of property it is - equipment is generally depreciated of 5-7 years while buildings typically depreciate over 25.5 or 39 years depending on use.

Opus 17Answer

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