If you are the owner of a non-residential property, you know the regular depreciation over the improvement is 39 years. Today I want to give you a good news enacted by Protecting Americans Tax Hikes. If you use the commercial building for business or you rent it to your business, you can accelerate your depreciation deduction by 50% in 2016. This is different than the prior Act for “Qualified Leasehold Improvement” which is for leasehold improvement, retail and restaurant. Also, unlike the prior Act, it’s not subject to 3-year rule (i.e. you don’t have to wait three year after the place is placed in service).
Contact us if you want to know if this tax benefit can help you.
Leave a Reply