Are these expenses deductible or depreciated?

[Jan S]

I have a client who is RENTING a building to use as a boutique. She told me she spent $40,000 on renovations before opening the business.

Since she doesn't own the building, how do I handle the expenses?

[S T]

Leasehold

Wouldn't these be leasehold expenses? She leased the space and the landlord allowed for no improvements due to the lease amount charged. Your T/P would have constructed the interior with leasehold improvements, such as electrical, walls, paint, ceiling, etc. T/P might also have purchased furniture and fixtures, showcases, etc.

You might have to breakdown for proper depreciation treatment, such as the leasehold, and the boutique cases might be furniture/fixtures.

Sandy

[taxea]

Are these expenses deductible or depreciated?

there are several places to research this...Pub 17 business expenses and Pub 535 business expenses. taxea