Claim  your depreciation deduction for nonresidential properties!

26 United States Code §168
Amended by H.R. 8
Effective date: January 1, 2013

A 50% bonus depreciation is available for tenant improvements (TIs) on nonresidential property originally constructed and put into use between December 31, 2007 and January 1, 2014.

To qualify for this 50% depreciation deduction, the TIs must be constructed:

  • under a lease agreement;
  • on property used exclusively by the tenant; and
  • more than three years after the building was placed in service.

The following improvements do not qualify for the 50% depreciation deduction:

  • building enlargements;
  • elevators or escalators;
  • structural improvements to common areas; and
  • the internal structural framework of a building.

Editor’s note — This 50% bonus depreciation deduction was originally slated to expire on January 1, 2013. It was extended by The American Taxpayer Relief Act of 2012, otherwise known as a fiscal cliff deal. A similar but separate 100% first-year bonus depreciation deduction was available in 2011.

Related article:

100% first-year depreciation deduction on tenant improvements