Which of the following assets cannot be depreciated using Section 179?

Which of the following assets cannot be depreciated using Section 179?

• A. Vehicles under 6,000 pounds
• B. Machines and equipment
• C. Intangible assets
• D. Buildings

Answer: (D)

The reason buildings cannot be depreciated using Section 179 is that Section 179 allows businesses to deduct the cost of certain types of property as an expense in the year the property is placed in service, rather than depreciating the cost over time. However, real property, including buildings and structures, is specifically excluded from this provision. While buildings can be depreciated over a longer period using traditional depreciation methods, they do not qualify for the immediate expensing benefits provided under Section 179. In contrast, assets like machinery and equipment, which can be expensed under Section 179, are tangible personal property. Vehicles under a certain weight can also qualify, although there are specific limitations based on their use. Intangible assets have their own set of depreciation rules and are generally not eligible for Section 179. The distinction is important for tax planning and asset management in a business context.

The reason buildings cannot be depreciated using Section 179 is that Section 179 allows businesses to deduct the cost of certain types of property as an expense in the year the property is placed in service, rather than depreciating the cost over time. However, real property, including buildings and structures, is specifically excluded from this provision. While buildings can be depreciated over a longer period using traditional depreciation methods, they do not qualify for the immediate expensing benefits provided under Section 179.

In contrast, assets like machinery and equipment, which can be expensed under Section 179, are tangible personal property. Vehicles under a certain weight can also qualify, although there are specific limitations based on their use. Intangible assets have their own set of depreciation rules and are generally not eligible for Section 179. The distinction is important for tax planning and asset management in a business context.