Discussion:Lease Improvements 2006
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Discussion Forum Index --> Tax Questions --> Lease Improvements 2006
| 3 January 2007 | |
| Was there any extension to the 15 year depreciation class for qualified leasehold improvements? | |
| 3 January 2007 | |
| Yes. | |
| 3 January 2007 | |
| Solomon is right. 15 year depreciation periods for leasehold and restaurant improvements (as opposed to the usual 39-year write-off period) | |
| 3 January 2007 | |
| Can a tenant that made the improvements just expense them under Sec. 179? In other words, if you can depreciate it, can you expense it? | |
| 3 January 2007 | |
| Crow: I think not. Sec. 179 is available only for tangible personal property. Leasehold improvements are part of the real estate. -- Larry Hess, CPA, Albuquerque, NM - Talk to me | |
| 3 January 2007 | |
| Ok, I was really thrown by this. So my clients are back to segregating out what may be Sec. 1245 property (i.e. non-structural etc.)? This I had discussed on here before. | |
| 3 January 2007 | |
| Reg. 1.48-1(e)(2) for structural components. | |
Taxstudent (talk|edits) said: | 5 January 2007 |
| Crow,
15-year qualified leasehold improvements are 1250 by definition. Section 179 only applies to section 1245 property, including real property that is not section 1250 property. More importantly, the 15-year write-off does not apply to all 1250 leasehold improvements; it follows rules similar to the rehab credit. The analysis and factual development (and allocations) can be just as intensive as those involved in segregating 1245 from 1250 property. | |
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