Corporation tax write-off question?
Posted on March 2, 2009 by admin
dsert_fox asked:
Can a corporation buy a house in cash for business reasons and write-off the amount? For example, your corporation, let’s say you own this corp. with only 5 investors, makes $2,000,000 a year gross. The corp. buys a $500,000 house. Can they tax deduct that $500,000?
Can a corporation buy a house in cash for business reasons and write-off the amount? For example, your corporation, let’s say you own this corp. with only 5 investors, makes $2,000,000 a year gross. The corp. buys a $500,000 house. Can they tax deduct that $500,000?
No.
Buildings are depreciable assets, and the commercial depreciation schedule is about 28 years.
So, you can write off the property taxes, the upkeep, the utilities, put not the $500,000 asset.