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Discussion Forum Index --> Basic Tax Questions --> 2008 15 year depreciation on leasehold improvements
Discussion Forum Index --> Tax Questions --> 2008 15 year depreciation on leasehold improvements
Bjacpa (talk|edits) said:
| 30 January 2009
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| Did the IRS extend the accelerated depreciation from 39 years to 15 years on leasehold improvements put into service in 2008? The IRS Pub 946 on their website has not been updated for 2008. I know it was up for possible extension.
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Notax (talk|edits) said:
| 30 January 2009
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| Yes, Congress extended the accelerated depreciation from 39 to 15 years if you are refering to qualified leasehold improvements.
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Bjacpa (talk|edits) said:
| 30 January 2009
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| Now to determine if an air conditioning system installed on a roof, but benefitting the building constitutes a qualified leasehold improvement eligible for the accelerated depreciation. The definition of "QLI" is that it needs to be internal to the commercial property.
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Futenma (talk|edits) said:
| 31 January 2009
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| Improvements to any structural component benefiting a common area don't qualify. So, unless this is some kind of special situation, I wouldn't think it would qualify.
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Bjacpa (talk|edits) said:
| 31 January 2009
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| Thanks Futenma - further research on my part confirms your conclusions.
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PBinNJ (talk|edits) said:
| 19 April 2009
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| To follow up on this discussion, to qualify for leasehold improvements and 15 year SL depreciation, must the building be more than 3 years old? If so, must the lessee who made the improvements use 39 years? Thanks.
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PBinNJ (talk|edits) said:
| 20 April 2009
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| Let me try again, are qualified leasehold improvements available if the lessee makes the improvements on a new building? If not, must he use 39 years? Thanks.
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Notax (talk|edits) said:
| 20 April 2009
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| No. See Sec. 168(k)(3) - property must be at least three years old.
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