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: Can You Expense Improvements to a Building Under GAAP Accounting? | Small Business - Chron.com
Can You Expense Improvements to a Building Under GAAP Accounting? Small Business
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Accounting & Bookkeeping
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Accounting
By Jonathan Lister
Generally accepted accounting principles, or GAAP, is a set of standards used by accountants across all areas of business and industry in the United States. This standardizes presentation of financial records and tax documents to make paperwork easier to interpret. GAAP follows the Internal Revenue Service's guidelines for tax deductions, including business property improvements. While these regulations don't allow business owners to immediately expense improvement costs, the IRS does allow businesses to recoup through depreciation. Real Property Depreciation
The IRS doesn't allow tax deductions for improvements made to business locations or rental properties. Improvements to these properties increase the overall value of buildings and extend the useful life under which business owners use the properties to earn income. Since GAAP has legal obligations to conform with tax laws, no business owners or landlords can declare improvements to buildings as expenses for tax deduction purposes. Instead, the IRS requires business owners to depreciate building improvements over a number of years.