Just want to make sure you understand that there is some exposure here. I'm not saying don't do this, I just think it is important to understand that if you won the audit lottery the IRS may adjust your return.
As noted above, if you do not "take" any of the leasehold improvements, you are certainly allowed to write them off. However, in your case based on your facts stated, you should have about 5 years of depreciation remaining and not 19 years. The rule in depreciation is "taken or should have taken" meaning that the IRS could adjust the basis for depreciation that should have been taken but wasn't due to the incorrect life. We don't have the information to run the numbers, but this would more likely than not reduce your allowable loss.
This is certainly a practical way to "make things whole", just not the technically correct way. And one in which as noted above the IRS would challenge if audited.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
