Question

I enjoyed last month’s article Huge Tax Deductions for Landlords and Tenants, Last Call on the ability of the landlord or the lessee to write off a real property improvement immediately under Section 179 ($250,000 limit), use 50 percent bonus depreciation, and write off any leftover amount over a tax-advantaged 15 years, but I don’t think this works for related parties.

Am I correct?

Answer

Yes, you are correct.

For “qualified leasehold improvement property,” a lease between related parties is not a lease and ... Log in to view full article.