Today TaxMama hears from David in New York with this sensible question.
https://londonbes.education/Media/new/write-paper-for-me.html
“I have leasehold improvements in a warehouse I rent. The lease is five years. May I depreciate the leasehold improvements over the life of the lease, or five years?
buy antabuse online healingtohappy.com/wp-content/languages/new/over/antabuse.html no prescription
Next year, may I depreciate the improvements over the remaining life, or four years?”
Dear David,
Now you’re just being logical, aren’t you?
How silly is that? Don’t you know that legislators with political agendas create the tax laws?
https://londonbes.education/Media/new/my-paper-writer.html
Not people who understand the reality of small business. Or do they?
Typically, if you’re going to invest heavily in leasehold improvements, you won’t be moving out at the end of the 5 year lease. You will be exercising your option to renew. And if your business is any good, you’ll be there for the next couple of decades – unless someone convinces you to buy your own building. (Ask me about the bizarre conversation I had with someone at a major company who’s moving into a massive new leased headquarters building.
buy temovate online healingtohappy.com/wp-content/languages/new/over/temovate.html no prescription
I said they should have bought the place, considering the rent they’re paying. You don’t want to know their answer!)
Anyway, regardless of the life of your lease, leasehold improvements get depreciated using the non-residential depreciation tables – 39 years.
https://www.irs.gov/publications/p946/ch04.html#d0e4823
Sorry to be the bearer of bad news.
And remember, you can find answers to all kinds of questions about leasehold improvements, depreciation and other tax issues, free.
https://londonbes.education/Media/new/need-help-writing-a-paper.html
Where? Where else? At TaxMama.com
- Ask TaxMama :: Where taxes are fun and answers are free
- www.TaxQuips.com :: The number ONE free tax podcast online
- IRS Publication 946 :: Chapter 4 – Recovery Periods Under ADS
File Download (0:00 min / 0 MB)
