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sirschuster
New Member

I paid for renovations on an office my company is leasing, where am I supposed to input the cost in TT Business?

Is this considered a capital expenditure even though I do not own the space and cannot take the assets if I leave? If it helps, it was new flooring, kitchen cabinets, and some plumbing.

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MichaelDC
New Member

I paid for renovations on an office my company is leasing, where am I supposed to input the cost in TT Business?

You'll enter this as an asset (Leasehold Improvement) in TurboTax Business just like you would enter a new computer purchase. The IRS sets a period of 15 years for leasehold improvements. 

However, if the tenant leaves before the 15 year depreciation period is up, the balance of the un-depreciated leasehold improvement is then deducted in the year the lease is terminated.  Therefore, you will not lose any of the deduction if you don't stay in the lease for 15 years.

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MichaelDC
New Member

I paid for renovations on an office my company is leasing, where am I supposed to input the cost in TT Business?

You'll enter this as an asset (Leasehold Improvement) in TurboTax Business just like you would enter a new computer purchase. The IRS sets a period of 15 years for leasehold improvements. 

However, if the tenant leaves before the 15 year depreciation period is up, the balance of the un-depreciated leasehold improvement is then deducted in the year the lease is terminated.  Therefore, you will not lose any of the deduction if you don't stay in the lease for 15 years.

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