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: 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. 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.