Are business building improvements limited by business income ? if so do they carry over?

[marymccauley1]

necessary improvements cost more than my business generated. i don't know how to proceed

[MaryEllen]

Building improvements should be added to the depreciation schedule as an asset. They will be depreciated over a period of time (39 1/2/ years). So you get a small 2.5% deduction every year. If you are renting the building, you will be able to deduct any undeducted amount when you move out of the building. If you own the building, the undepreciated value will be deducted from the gain you made on the property when you sell it.