new business start up

[sandy1202]

I have a client that purchased a Water/Ice dispensing machine in February 2022. I was delivered in August and they started the process of having it installed but ran into permit issues with the city where they were planning to install it. They changed the location and city, but did not complete installation until January 2023. I know they can claim start up expenses, but can they depreciate and take a 179 on the cost of the machine on their 2022 

[dkh]

No depreciation. IRS rules - date purchased or date placed in service whichever is latest.

[BobKamman]

Generally property is considered placed in service when it is ready and available for a specific use, regardless of whether or not it is actually used at the time.  

From what you are saying, the machine was ready and available.  The first site location was not.  Perhaps a close call based on all the facts and circumstances, but I don't view my job as saying No to everyone.  

[sjrcpa]

 I'd say it wasn't ready and available until it was installed.

[sjrcpa]

@sandy1202 

Start up costs are not deductible until the business starts.

[taxes96786]

Not if it wasn't in service.