Bonus depreciation for leasehold improvement - residential rental

Forum|Forum|3 years ago
October 7, 2022
1 reply
25 views

It seems like the CARES Act allows bonus depreciation for non-residential rental property.

I've been searching to see if bonus depreciation is also allowed for leasehold improvement in a residential

rental property? A client made some improvement to a rental house and they want bonus depreciation.

I only see the allowance for non residential properties, i.e. they changed LSI to 15-year property.

Any advice would be appreciated.

Thank you very much.

ProSeries Professional

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T

Terry53029

Intuit Community Champion

Generally, machinery, equipment, computers, appliances and furniture will qualify for the 100% bonus deprecation, but it must have a class life of 20 years or less. If your client made capital improvements to the building that would be a class life of 27 1/2 years. I think that 100% expires at the end of 2022.