Title: Can You Expense Improvements to a Building Under GAAP Accounting? | Small Business - Chron.com
Headings: Can You Expense Improvements to a Building Under GAAP Accounting?
Can You Expense Improvements to a Building Under GAAP Accounting?
Real Property Depreciation
Qualified Property Improvements
Depreciating Property Improvements
Methods of Depreciation
References

Content: The first two options are accelerated depreciation methods where the majority of improvement costs depreciate in the first years of the recovery periods. In the 200 percent method, accountants multiply the yearly depreciation cost by 200 percent to achieve the new accelerated depreciation rate. For example, a new lighting system with a total cost of $15,000 and a useful life of 15 years normally depreciates $1,000 each year or 6 percent. Multiplying this number by 200 percent gives a depreciation figure of $1,800 or 12 percent. In contrast, the straight-line method breaks up the cost of the improvements evenly over useful life. ‒‒:‒‒
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References
IRS: A Brief Overview of Depreciation
IRS: Publication 946
Resources
Federal Accounting Standards Advisory Board: Authoritative Source of Guidance
Writer Bio
Jonathan Lister has been a writer and content marketer since 2003. His latest book publication, "Bullet, a Demos City Novel" is forthcoming from J Taylor Publishing in June 2014.