A buyer and seller can agree to an earlier closing date in the purchase contract, but if the lender can't perform during that time window, it doesn't really matter which date is selected, because it's not going to close on the date the buyer and seller specify. It will close when the lender is ready to close.
Section 179 expense is reported on Schedule K and passed to the partners or shareholders and is not reported in ordinary income. Bonus deprecation is allowed on new assets placed in service in the current tax year and used in the United States with a recovery period of 20 years or less. Certain leasehold improvements, restaurant property, and retail improvement property may also qualify for bonus deprecation. Used assets are not eligible for bonus depreciation. Bonus depreciation is calculated after Section 179 expense is taken and before current year depreciation is calculated.
1 Depreciation is used to ratably reduce the cost of a tangible fixed asset, and amortization is used to ratably reduce the cost of an intangible fixed asset. 2  The amortized cost term can also be applied to the accumulated amount of depletion of a natural resource that has been charged to expense. For example, ABC International has been depreciating a machine in its production area for the last five years. 2  The $48,000 that has been charged to depreciation expense thus far is its amortized cost. 3  As another example, ABC has been amortizing the acquired cost of a patent for several years.