Leasehold improvements must be in service for three years for special depreciation

[TAXGRAMA]

Taxpayer signed a lease/franchise agreement in Oct 2013. The gym was actually put in service by original franchisee in the building where it is now in 2007. Franchise agreement requires certain improvements be made which were done in Dec 2015. Do the leasehold improvements qualify for "special depreciation" which one of the qualifications is the improvements must be done after 3 yrs of the building BEING IN SERVICE? Being in service as a gym since 2007 or in service since the new franchisees signed lease? Does this hold true for leasehold improvements to be section 179 also?

[DaveinTexas]

Any Person

Generally, qualified leasehold improvement property is any improvement to an interior portion of a building (placed in service before January 1, 2020) that is nonresidential real property, provided all the following requirements are met:

(1) The improvement is made under or according to a lease by the lessee (or any sublessee) or the lessor of that part of the building.

(2) That part of the building is to be occupied exclusively by the lessee (or any sublessee) of that part.

(3) The improvement is placed in service more than three years after the date the building was first placed in service by any person.

I think that (3) is what you are looking for.