RETAIL STORE CAN BE IN SERVICE BUT NOT OPEN FOR BUSINESS
RETAIL STORES DOES NOT HAVE TO BE OPEN FOR BUSINESS TO BEGIN DEPRECIATION A federal court in Louisiana has ruled against the IRS holding that a building housing a retail store can be considered “placed in service” even though the retail store is not yet open for business.
The business was a home-building materials retailer that constructed a new building. The company was issued certificates of occupancy that allowed it to receive equipment, and install shelving, racks and merchandise. The business sought to take bonus depreciation and other tax benefits associated with a special tax zone it was in, and the IRS denied them. The District Court held that that there is no requirement that a building be open for business in order for it to be placed in service for purposes of a depreciation allowance.
You can read the case here: Stine, (DC LA 1/27/2015).