Leasehold Improvements Residential

[erchess]

A client moved into a rented fix-er-upper in 2010. I vaguely remember (I think) that they're supposed to be able to depreciate the improvements over the recovery period and when the lease is up write off any unrecovered costs in that year. So I have questions:

Am I right that this is true for the renter of a residence with no business use of the home?

If I am right on what form is the depreciation claimed? If this is only available to itemizers I doubt this client qualifies. And yeah that is what I think I remember.

The client is not getting anything from the landlord for the work except low rent for the entire period that she rents the place.

[Burke]

I am a little unclear about who is doing what. It is the owner/lessor who takes the depreciation of leasehold improvements, but this is available only for non-residential property. This applies to commercial buildings which have been placed in service for more than 3 years, and the terms must be included in the lease to the lessee. Goes on 4562.

[erchess]

TY Burke

That answers the question barring the unlikely possibility someone will say you are wrong. I was absolutely sure the tenant could write off improvements to business use property and I thought I remembered that it worked the same for personal use property but I guess I was wrong. I'm glad I posted here before I popped off to my client about what I was going to do for her.