Q. If someone purchased a residential or commercial rental property in 2010, does he qualify for thededuction for leasehold improvements included in the purchase price? E.E., Norwalk, Calif.
A. No. Thedoesn’t apply to existing leasehold improvements that are included in a property acquisition. It applies only to improvements that are made after you own the property. For this purpose, qualified leasehold improvements are:
- Interior improvements made to leased nonresidential real property
- Occupied exclusively by the lessee or sub-lessee
- Placed in service more than three years after the building was first placed in service
- Cannot constitute an enlargement of the building, nor can it be an elevator, escalator, a structural component benefiting a common area, or an interior structural component.
Tip: The Section 179 deduction for qualified leasehold improvements is limited to $250,000, and the usual Section 179 deduction limitation rules apply.
Like what you've read? ...Republish it and share great business tips!
Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...
We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.
The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.
" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/13236/section-179-deductions-up-against-the-wall "