Discussion:Depreciation recapture-restaurant improvements

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Discussion Forum Index --> Advanced Tax Questions --> Depreciation recapture-restaurant improvements
Discussion Forum Index --> Tax Questions --> Depreciation recapture-restaurant improvements

Tom2 (talk\|edits) said:	23 January 2008
are restaurant leasehold improvements depreciated under the new 15 year useful life subject to a Sec. 1231 or Sec 1245 recapture?

TheTinCook (talk\|edits) said:	23 January 2008
No such thing as §1231 recapture. Qualified restaurant property is §1250 property by definition. You might have some improvements that could have been §1245(a)(3)(B)(i) property, but you would have already had the benefit of shorter a depreciation period.

WPCPA (talk|edits) said:

10 April 2008

Sec. 263. Capital expenditures

TITLE 26, Subtitle A, CHAPTER 1, Subchapter B, PART IX, Sec. 263. STATUTE (a) General rule No deduction shall be allowed for - (1) Any amount paid out for new buildings or for permanent improvements or betterments made to increase the value of any property or estate. This paragraph shall not apply to - (A) expenditures for the development of mines or deposits deductible under section 616, (B) research and experimental expenditures deductible under section 174, (C) soil and water conservation expenditures deductible under section 175, (D) expenditures by farmers for fertilizer, etc., deductible under section 180, (E) expenditures for removal of architectural and transportation barriers to the handicapped and elderly which the taxpayer elects to deduct under section 190, (F) expenditures for tertiary injectants with respect to which a deduction is allowed under section 193;1 (G) expenditures for which a deduction is allowed under section 179;1 or (H) expenditures for which a deduction is allowed under section 179A.

YOU MAY NEVER VERIFY FROM THIS STATUTE - EVER. Even if you think you have exceptions. As the paid Preparer you are now subject to Circular 230 Sec 10:34 - Penaly of $5,000 every time you take a shorter live on an Asset.

Ask yourself is it worth it?

RoyDaleOne (talk\|edits) said:	10 April 2008
"Sec. 263. STATUTE (a) General rule No deduction shall be allowed for - (1) Any amount paid out for new buildings or for permanent improvements or betterments made to increase the value of any property or estate." It says no deductions ever. Is this correct?