Q:

Subject: section 179

Curious, would an atm qualitfy for section 179.  Maybe one can argue that the atm part qualifies but if it is enclosed in a building, it is not.   I presume we would have to have the atm in place and working prior to year end.  We are on cash basis for tax purposes and a S corp.

A:

You should be working with your own personal professional tax advisor on matters like this.

S/he will most likely tell you that the actual ATM machines will qualify for Sec. 179; but structures built to house them do not.

Sec. 179 and depreciation deductions have always required that the asset be actually placed into active service before the end of the tax year, regardless of when you pay for them.

It is also not relevant for Sec. 179 or deprecation purposes how you pay for the machines, cash or via a loan.

Again, your own personal tax pro should be able to give you more specific advice for your particular situation.

Good luck.

Kerry Kerstetter

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