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 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. A business owner in the United States uses the General Depreciation System unless the owner uses business property predominantly outside the country, listed property has less than 50 percent use for business, or is tax-exempt. Under the general system, a business owner depreciates an improvement using the IRS's guidelines for useful life in Publication 946. For example, if an improvement has a useful life of 15 years, a business owner deducts the total cost of the improvement over that 15-year period. Methods of Depreciation
Accountants working within GAAP can use any of three methods for depreciating property improvements within IRS regulations. If accountants use the General Depreciation System, they can choose from the 200 percent declining balance method, the 150 percent declining balance method or the straight-line method.