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: Qualified Property Improvements
Not all property improvements qualify for depreciation under the Internal Revenue Code. Improvements made directly to the land, including the addition of shrubbery and fences, count as qualified improvements for depreciation. Improvements to physical business properties, including new rooms, new electrical wiring and new roofs, also count as qualified home improvements. Small repairs, including replacing a single light fixture or a broken pane of glass, don't qualify as depreciation expenses. The IRS requires each business owner or landlord making qualified improvements to properties to treat the cost of improvements as separate depreciation expenses from the actual properties. The improvements also have separate useful lives from the larger business locations. Useful life is the total number of years taxpayers can use to recoup the cost of depreciating property. At the time of publication, the useful life for improvements to businesses is 15 years. Depreciating Property Improvements
Depreciating an improvement to real property can one use one of two methods under the Modified Accelerated Cost Recovery System used by the IRS: the General Depreciation System or the Alternative Depreciation System.