Bonus Depreciation

[Kram BergGold]

My client placed into service a leasehold improvement in early 2003, like Feb or March.
Would this have qualified for 30% or 50% bonus depreciation?

[sea-tax]

My client placed into service a leasehold improvement in early 2003, like Feb or March.
Would this have qualified for 30% or 50% bonus depreciation?

Prior to May 6th 30% afterMay 5th 50% it must be a qualified leasehold improvement.

Requirements
Must be non-residential
A) The improvement is made under a lease by the lessee or the leesor of that part of the building
B) That part of the building is to be occupied exclusively by the lessee and
C) the improvement is placed in service more than 3 years after the date the building was first placed in service.

[Kram BergGold]

? for Sea-Tax

C) the improvement is placed in service more than 3 years after the date the building was first placed in service
Do you think this is placed into service by anyone or the taxpayer?
In my case the building is quite old but my client did the leasehold improvement shortly after he purchased the building for his first tenant.

[sea-tax]

C) the improvement is placed in service more than 3 years after the date the building was first placed in service
Do you think this is placed into service by anyone or the taxpayer?
In my case the building is quite old but my client did the leasehold improvement shortly after he purchased the building for his first tenant.

Good question , and to be frank I am not sure. If I had to guess I would say 3 years after your client put the building into service. I say this because it stands to reason that the IRS would not allow a taxpayer to use another taxpayers placed in service date. This I must tell you is my opinion and unfortunately I have no specifics to back it up. But if I was in your situation this is how I would most likely handle it.

maybe some of the other pros here can give you some advise.

[OldJack]

pros???

maybe some of the other pros here can give you some advise.

Sea-tax, are you saying there are "pros" on this forum? I thought we were all just learners. d-a-m-n... I'll have to watch what I say as not to be embarrassed. I was going to agree with your answer, but now I am not sure what is is.

[Kram BergGold]

The answer

We found the answer in the temp regs. Three years refers to any and all owners. So a ten year old commercial building bought and immediately improved qualifies.

[sea-tax]

We found the answer in the temp regs. Three years refers to any and all owners. So a ten year old commercial building bought and immediately improved qualifies.

Well Kram I stand corrected, sometimes when I am not sure and can't find a definative answer I go with the most conservative option. Glad you found the right answer though, I will have to put that one away in the memory banks. Gosh my RAM is getting full I might have to start deleting my mind. What were we talking about now? I forgot oh well