Tax Season Tip: 2018 Tenant Improvement Tax Depreciation


Tax season is upon us! What better way to celebrate than to update our popular post “2018 Tenant Improvement Tax Depreciation - 3 Questions to Ask Your CPA?”

With commercial leases, taxes can be complicated. How does depreciation work with tenant improvement costs?

I spoke with a CPA to learn what you need to be asking your tax advisor when it comes to tenant improvements.

Here is a snippet:

It's tax season.  I don't want to speak for you, but I want the most deductions as possible.  How about you?  With commercial leases, a big question is - how do I depreciate tenant improvement costs?

In three easy steps, we're going to dive into what questions to ask your CPA to get the most depreciation possible for your tenant improvement.

Question 1:  Is my renovation considered a tenant improvement?

A tenant improvement is an improvement that is either done by the landlord or tenant.  The improvement needs to be contained in the wall and only be for one tenant.  For example, extending HVAC into another room is a tenant improvement and can be written off, but painting the walls cannot.