Owners of leasehold, restaurant and retail properties must act soon to enjoy extended depreciation-related breaks

Posted on 09.06.13

In January, Congress extended some depreciation-related tax breaks that can benefit owners of leasehold, restaurant and retail properties:

50% bonus depreciation. Congress extended this additional first-year depreciation allowance to qualifying leasehold improvements made in 2013.

Section 179 expensing. Congress revived through 2013 the election to deduct under Sec. 179 (rather than depreciate over a number of years) up to $250,000 of qualified leasehold-improvement, restaurant and retail-improvement property.

The break begins to phase out dollar-for-dollar when total asset acquisitions for the tax year exceed $2 million.

Accelerated depreciation. Congress revived through 2013 the break allowing a shortened recovery period of 15 — rather than 39 — years for qualified leasehold-improvement, restaurant and retail-improvement property.

If you are anticipating investments in qualified property, you may want to make them this year to take advantage of these depreciation-related breaks while they are available. It is currently uncertain whether they will be extended to 2014. Please contact us if you would like to learn more about qualifying for these breaks. information@keitercpa.com | 804.747.0000

Source: PDI Global