FAQ: When is Equipment “Placed in Service”?

For a business to start writing off the cost of depreciable
equipment and property, it is necessary that the equipment be placed in service. To write off costs in 2015, the equipment must be placed in service by December 31, 2015. The “placed-in-service” requirement applies, for example, for taking depreciation, especially first-year bonus depreciation, under Code Sec. 168, expensing of the cost of property under Code Sec. 179, and other write-offs such as the investment tax credit under Code Sec. 46.

FAQ: When is Equipment “Placed in Service”?

For a business to start writing off the cost of depreciable
equipment and property, it is necessary that the equipment be placed in service. To write off costs in 2015, the equipment must be placed in service by December 31, 2015. The “placed-in-service” requirement applies, for example, for taking depreciation, especially first-year bonus depreciation, under Code Sec. 168, expensing of the cost of property under Code Sec. 179, and other write-offs such as the investment tax credit under Code Sec. 46.

FAQ: When is Equipment “Placed in Service”?

For a business to start writing off the cost of depreciable
equipment and property, it is necessary that the equipment be placed in service. To write off costs in 2015, the equipment must be placed in service by December 31, 2015. The “placed-in-service” requirement applies, for example, for taking depreciation, especially first-year bonus depreciation, under Code Sec. 168, expensing of the cost of property under Code Sec. 179, and other write-offs such as the investment tax credit under Code Sec. 46.