I as a S-Corp leased a building for a new business. There were a number of expenses in 2019 remodeling it to meet our needs. What can I expense in 2019 does anything ne

[objuan1953]

I as a S-Corp leased a building for a new business. There were a number of expenses in 2019 remodeling it to meet our needs. What can I expense in 2019 does anything ne

[MinhT1 · Accepted solution]

The costs are called leasehold improvements.

There are 3 ways you can treat them taxwise depending on their nature and cost:

1. You can take a 179 deduction and expense 100% of their cost. Please see this IRS document.

2. They can be capitalized and depreciated over 15 years.

3. If their unit cost is $2,500 or less, you can claim them as business expenses if you make the de minimis safe harbor election.