News: Ask the Professional - Can I deduct leasehold improvements to my leased office space?

For Immediate Release:
January 07, 2011
Contact:
James Kohles, Stockholder
925-210-2180
jkohles@rina.com

Can I deduct leasehold improvements to my leased office space?
The short answer is yes. There is a provision in the newly enacted law regarding expensing of up to $500,000 of business property if the total assets acquired during the year do not exceed $2M. The expensing provision is not new but the addition of leasehold improvements (and increased amount) is. Leasehold improvements qualify provided they’re not structural in nature and are not part of a rent offset or other landlord arrangement. Identifying qualifying property can be difficult. Therefore, if you are contemplating this type of project, it is recommended that you get some advice before the work is done. There are consultants, in addition to your tax advisor, that specialize in this area. If the work has already been done, the consultants can still help to identify the improvements that will qualify. This provision is effective for 2010 and 2011.