• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer
  • Home
  • Services
    • Accounting
    • Payroll
    • Tax
    • Compliance
    • Incorporation Services
    • CFO & COO Services
  • About Us
  • Pricing
  • Contact Us
  • Consult
  • Pay Bill
Indian CPA | Virtual Tax Consultancy serving all over US

Indian CPA | Virtual Tax Consultancy serving all over US

Indian Tax Consultant serving across all 50 States

  • Personal Tax
  • Personal Tax FAQ
  • Personal Finance
  • Personal Finance FAQ
  • Subscribe to Indian CPA

100 Percent Write-Off for Qualified Leasehold Improvements

April 19, 2011 by Roy Vargis CPA, CMA, CFM, CITA, EA, ACMA, CGMA Leave a Comment

In an effort to get the economy back on the rails again, the 2010 Tax Relief Act permits businesses to claim a 100% depreciation deduction (100% bonus depreciation allowance) in the year that qualifying assets are placed in service. Qualified leasehold improvements clearly are eligible for this special 100% write-off.

Bonus depreciation basics – In general, a leasehold improvement qualifies for the 100% bonus depreciation allowance if it is acquired and placed in service after Sept. 8, 2010 and before Jan. 1, 2012, and the original use of the improvement commences with the taxpayer.

Qualified leasehold improvement property – Generally, qualified leasehold improvement property includes interior improvements to a building which is nonresidential real property if:

(1) The improvement is real property;

(2) The improvement is made to leased property. A lease for this purpose is defined as any grant of a right to use property, either by the lessee, sublessee or lessor of the building portion;

(3) The leased portion of the building is occupied exclusively by the lessee (or sublessee); and

(4) The improvement is placed in service more than 3 years after the date the building was first placed in service.

The following expenditures, however, do not qualify: amounts paid for the enlargement of a building, a structural component that benefits a common area, an elevator or escalator, or the internal structural framework of the building.

Whether you have already made leasehold improvements or are contemplating in doing so, and have questions on how this special write-off can fit into your business planning for 2011, please give this office a call.

Filed Under: Personal Tax, Tax related

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Primary Sidebar

  • Facebook
  • LinkedIn
  • Twitter
  • YouTube

More to See

January 2020 Individual Due Dates

January 2, 2020 By Roy Vargis CPA CMA CFM EA CITA ACMA CGMA

How Can I Prove Financial Hardship to the IRS If I Can’t Pay My Taxes?

January 2, 2020 By Roy Vargis CPA CMA CFM EA CITA ACMA CGMA

Footer

Recent

  • Individual and Business Provisions of the CARES ACT
  • January 2020 Individual Due Dates
  • How Can I Prove Financial Hardship to the IRS If I Can’t Pay My Taxes?
  • Is Your Will or Trust Up-to-Date?
  • Understanding Tax Lingo

Search

Copyright © 2022 · Magazine Pro on Genesis Framework · WordPress · Log in