I paid renovation costs for my lease rental to accommodate my massage business. Can these be written off as expenses or amortized for period of lease?

[hero2]

The renovation costs were over $200K and the lease period was 5 years with option to renew.

[Carl]

You'll enter it in the Business Assets section as a leasehold improvement with a 15 year class life. If the lease ends before the 15 years is up, then you're allowed to deduct the remaining amount in the tax year you vacate the property.

[hero2]

Thank you.   Amortization will be for 15  years even though lease is currently 5 years with option to renew for another 5?

[Carl]

Amortization will be for 15 years even though lease is currently 5 years with option to renew for another 5?

Yes. If you renew the lease, depreciation continues. If you do not renew the lease and go elsewhere, then the remaining depreciation is fully deductible in the tax year the current lease ends.