Depreciation: Depreciation is the annual deduction that allows you to recover the cost or other basis of your business or investment property over a certain number of years. Depreciation starts when you first use the property in your business or for the production of income. It ends when you either take the property out of service, deduct all your depreciable cost or basis, or no longer use the property in your business or for the production of income. Generally you cannot depreciate land.Section 179 property - Section 179 property is property that you acquire by purchase for use in the active conduct of your trade or business, and is one of the following. Tangible personal property, other tangible property (except buildings and their structural components) used as: An integral part of manufacturing, production, or extraction or of furnishing transportation, communications, electricity, gas, water, or sewage disposal services; A research facility used in connection with any of the activities in (1) above; or A facility used in connection with any of the activities in (1) above for the bulk storage of fungible commodities; Single purpose agricultural (livestock) or horticultural structures; Storage facilities (except buildings and their structural components) used in connection with distributing petroleum or any primary product of petroleum. Section 179 property does not include the following: Property held for investment (section 212 property); Property used mainly outside the United States (except for property described in section 68(g)(4)); Property used mainly to furnish lodging or in connection with the furnishing of lodging (except as provided in section 50(b)(2)); Property used by a tax-exempt organization (other than a section 521 farmers' cooperative) unless the property is used mainly in a taxable unrelated trade or business; Property used by a governmental unit or foreign person or entity (except for property used under a lease with a term of less than 6 months); Air conditioning or heating units.
Mechanic's lien - a legal process which seeks to guarantee payment for contracted services rendered on an improved piece of property. Depending on the laws of a particular state, contractors, subcontractors and suppliers can file a mechanic's lien within a certain amount of time after the work has been completed and payment has not been received. A mechanic's lien extends to both the structure and the land beneath it. Until the debt is paid, the landowner does not own a clear title.
