Occupant repairs on rented building

[Bobby]

A beautician was renting a booth, but the owner died and
she purchased the business, all equipment. She does not own
the building. The owner would not fix the building. To keep from
losing customers, she had the repairs done herself, Most of them
would be depreciation items if she owned the building. I am inclined
to take off all the repairs in one year, but am not sure. Any suggestions.
Bobby

[Gretel]

If they are depreciable costs maybe leasehold improvements is what you are looking for. You cannot convert depreciable costs to expenses just because of a bad situation.

Maybe landlord will consider lower rent for awhile, then it would be prorated rent expense.

[Bobby]

How do you show leasehold improvements on tax return

How do you show leasehold improvements on tax return?

[BOB W]

How do you show leasehold improvements on tax return?

Amoritize over the term of the lease.

[Davc]

Amoritize over the term of the lease.

No. Depreciate over 39 years unless it's qualified leasehold improvements.

[ChEAr$]

No. Depreciate over 39 years unless it's qualified leasehold improvements.

concur in full.

[BOB W]

concur in full.

Just found this in TTB >>>Effective 2010. Leasehold improvements and other Nonresidential
Real Property are treated as 39-year property.

2009 SL OVER 15 YEARS

TTB ??????? Conflict...????

Leased property. Leased property is depreciable only if the taxpayer
retains incidents of ownership. Incidents of ownership include
legal title to the property, legal obligation to pay for the
property, responsibility to pay maintenance and operating expenses,
responsibility for taxes, and risk of loss if the property is
destroyed, damaged, or diminishes in value.
Land preparation and improvements.