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Leasehold Improvement

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J

jlcl

Member
What is the name of your state? California

I bought a small office space in 2006 for $150k. The office space is ready to be occupied as the plumbing/electrics/bathrooms/restrooms were all done when I purchased the buiding. I leased the office space in 2006 to a tenant. For 06 tax return, how would I estimate the leasehold improvement to depreciate. Can I use the county property assessor form for the land value at $50k, and assume the remaining $100k relates to leasehold improvement and depreciate that leasehold improvement amount over useful life? If not, how would I estimate the amount of leasehold improvement?
 


J

JETX

Senior Member
Clearly, you did this as a BUSINESS investment, correct??
If so, then spend the measly $100 or so and get a local CPA to help you with your taxes. This is a LEGAL website... not a tax advice site.
 
LdiJ

LdiJ

Senior Member
jlcl said:
What is the name of your state? California

I bought a small office space in 2006 for $150k. The office space is ready to be occupied as the plumbing/electrics/bathrooms/restrooms were all done when I purchased the buiding. I leased the office space in 2006 to a tenant. For 06 tax return, how would I estimate the leasehold improvement to depreciate. Can I use the county property assessor form for the land value at $50k, and assume the remaining $100k relates to leasehold improvement and depreciate that leasehold improvement amount over useful life? If not, how would I estimate the amount of leasehold improvement?
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If the property was ready to occupy when you purchased it, then you did not make any leasehold improvements, therefore you have no leasehold improvements to depreciate. On top of that, leasehold improvements are normally improvements that the lessee makes to the space, (and pays for) and its the lessee who depreciates such.

You will simply be depreciating the office space itself, based on the purchase price.
 
LdiJ

LdiJ

Senior Member
JETX said:
Clearly, you did this as a BUSINESS investment, correct??
If so, then spend the measly $100 or so and get a local CPA to help you with your taxes. This is a LEGAL website... not a tax advice site.
Click to expand...
Uh....I don't know where that came from. You can't answer a question regarding tax law without giving tax advice....they are one in the same. He question was a legal question as far as tax law is concerned.
 
J

JETX

Senior Member
LdiJ said:
Uh....I don't know where that came from.
Click to expand...
That is because your not an attorney, nor do you have any legal experience or knowledge... as proven by your following statement.

You can't answer a question regarding tax law without giving tax advice.... they are one in the same.
Click to expand...
What a stupid statement... and not true. I guess all the attorneys who specialize in tax court issues are also giving tax advice while in court, huh?? NOT.

He question was a legal question as far as tax law is concerned.
Click to expand...
Then why didn't you provide ANY answer.... other than to show your stupidity.
 
Last edited:
LdiJ

LdiJ

Senior Member
JETX said:
Then why didn't you provide ANY answer.... other than to show your stupidity.
Click to expand...
I did answer him, and correctly. Right above the post where I responded to you. I also don't think that you understood my point. Any question about tax is a legal question. If you don't understand that, then you don't understand tax. We also like to keep things civil on this particular forum.
 
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