Office Remodling expense

[NotEasy]

How should office remodeling expense be depreciated?

I am thinking Macrs 35 years. Does anyone disagree?

Is there an alternative to go faster? Possible for the 30% or 50% bonus depreciation?

Thanks.

[solomon]

How should office remodeling expense be depreciated?

I am thinking Macrs 35 years. Does anyone disagree?

Is there an alternative to go faster? Possible for the 30% or 50% bonus depreciation?

Thanks.

If this is commercial, it would be 39 years. Sec. 168 property under the Economic Stimulus Act permits 50% for MACRS with a recovery period of 20 years or less. Section 179 has been raised to 250K. The bonus and 179 are for 2008.

[ChEAr$]

not 35 years

How should office remodeling expense be depreciated?

I am thinking Macrs 35 years. Does anyone disagree?

Is there an alternative to go faster? Possible for the 30% or 50% bonus depreciation?

Thanks.

However, what kind of office is this? Is it an owned building? Is it rented from another?
Is it a home office?

anyway, never heard of 35 year life; 39 years, yes.

[Uncle Sam]

Office Remodelng?

How about Leasehold Improvements amortized over 15 years?

[NotEasy]

However, what kind of office is this? Is it an owned building? Is it rented from another?
Is it a home office?

anyway, never heard of 35 year life; 39 years, yes.

It is a rental space. But there is no lease.

[NotEasy]

How about Leasehold Improvements amortized over 15 years?

I remember you can amortize leasehold improvement over the life of the lease. What about if there is no lease? How do you determine the number of years that you should use for the amortization?

[S T]

Type of

Just a month to month rental from a third party, not owned by the taxpayer ?
Taxpayer has a month to month rental agreement?


Sandy

[JON]

Life of lease

went away years ago. If you move out then you write off the balance.

[ChEAr$]

month to month

Just a month to month rental from a third party, not owned by the taxpayer ?
Taxpayer has a month to month rental agreement?


Sandy

is more common than you might think.

Another treatment possibility involves all remodeling payments being treated as
additional rent paid, esp if these are improvements to the property itself, versus items
such as room dividers, personal properties such as desks, etc. In this case payments
are expensed as rent, but landlord, since the improvements are now to his property,
adds to basis and depreciates over 39 years.

[Davc]

is more common than you might think.

Another treatment possibility involves all remodeling payments being treated as
additional rent paid, esp if these are improvements to the property itself, versus items
such as room dividers, personal properties such as desks, etc. In this case payments
are expensed as rent, but landlord, since the improvements are now to his property,
adds to basis and depreciates over 39 years.

I believe that is only an option if the actual cash rent is reduced by the cost of the improvements.

[NotEasy]

Just a month to month rental from a third party, not owned by the taxpayer ?
Taxpayer has a month to month rental agreement?


Sandy

Old lease has expired. And it is month-to-month now without a lease.

[NotEasy]

went away years ago. If you move out then you write off the balance.

Sorry I don't get what you said there. Are you answering my question or talking about something else?

My question is how many years the remodeling expense should be amortized when there is no lease. Thanks.

[joanmcq]

Jon answered your question. The ability to amortize over the life of the lease went away years ago. Leasehold improvements are 15 years.

[ChEAr$]

and since there is no lease,

Jon answered your question. The ability to amortize over the life of the lease went away years ago. Leasehold improvements are 15 years.

these expenditures aren' t leasehold improvements! (grin

[S T]

When

When were the remodeling expenses completed? While t/p had the lease or after the t/p went month to month?

Not Easy, can you provide more detailed information on this t/p lease or month to month, seems like you are not providing enough information to analyze this t/p situation.

Sandy