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New Member
posted Feb 5, 2023 1:21:07 PM

How do I categorize expenses from a remodel on a commercial building I am renting for my business?

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1 Replies
Expert Alumni
Feb 6, 2023 7:00:23 AM

The remodeling expenses on a rental commercial buildings are Leasehold improvements which must be capitalized.

 

Generally, leasehold improvements can be amortized over the shorter of the useful life of the improvement or the lease term.

 

They can also be expensed under section 179 if they qualify.

 

Please read this IRS document for more information.